Bonds (CBs) and warrants floated by South Korean listed firms

The amount of convertible bonds (CBs) and warrants floated by South Korean listed firms soared this year from a year earlier due mainly to a big one-off sale, data showed Monday.

Companies listed on the country’s main and secondary stock markets issued a combined 1.82 trillion won (US$ 1.56 billion) of CBs this year, up 18.2 percent from a year ago, according to the data by the Korea Exchange.

The increase was largely attributed to retail giant Lotte Shopping’s 979 billion won issuance of CBs, a type of bond that a holder can convert into shares of common stock in the respective listed firm.

The data also showed that the combined amount of bonds with warrants floated by those firms spiked 41.78 percent on-year to 2.62 trillion won.

Holders of bonds with warrants are eligible to purchase shares of the respective company along with the bond purchase.

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