Lotte Shopping entices investors with $400 million bond

The Korean retail operator, whose businesses range from department stores to TV-shopping, brings a rare single-A corporate issue that attracts orders for more than five times the final size.
Lotte's flagship department store in Seoul.
Lotte's flagship department store in Seoul.

Lotte Shopping last week raised $400 million from a five-year bond issue, which attracted a lot of interest due to the scarcity of private sector corporate bonds from Korea as well as single-A rated issues in Asia in general. Lotte is a market leader in both department stores and supermarkets in Korea, and the country’s third largest operator of convenience stores and hypermarkets, making it an attractive retail industry play in Korea where high entry barriers are benefitting the incumbents.

Having attracted total demand of $2.25 billion, the bonds tightened by 10bp on a spread basis in the secondary market on Friday, leading some observers to argue that they...

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