Local listed firms float fewer equity-linked bonds in 2012

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Local listed firms float fewer equity-linked bonds in 2012

Published: 23 Jul. 2012, 19:16

The amount of equity-linked bonds floated by Korean listed firms tumbled this year from a year earlier due to weak demand stemming from the bearish stock market, data showed yesterday.

Companies listed on the country’s main and secondary stock markets issued a combined 300.3 billion won ($261.9 million) of convertible bonds (CB) between Jan. 1 and July 17, down 80.6 percent from a year ago, according to the data by the Korea Exchange. CBs give holders the right to convert them into common shares after a given period.

The combined amount of bonds with warrants (BWs) issued by the listed firms also sank 24.43 percent on-year to 1.36 trillion won during the cited period. BWs offer holders a chance to buy shares in the issuing company at a guaranteed price.