Lotte Shopping raises $900 million from dual-currency CB

Korea’s Lotte Shopping last Wednesday raised about $900 million from the first dual-currency convertible bond in Asia ex-Japan in almost five years. The deal received strong interest despite a negative to flat yield and the continued volatility in financial markets and while the share price fell 7.2% yesterday, the CB held up quite well with one of the tranches trading above par and the other slightly below.

The deal was denominated in US dollars and Japanese yen and was initially launched at a combined size of $700 million a $500 million dollar tranche and a 16 billion approximately $200 million yen tranche but with an upsize option of $300 million...