A US$1 billion convertible bond blockbuster from government-owned Korean Deposit Insurance Corp (KDIC) could well lead the revival of the Asian convertible bond market. The largest pure Asian equity-linked issue from the region ex-Japan, and the second-largest in absolute terms (Hutchison Whampoa's US$3 billion exchangeable was the largest), it attracted a surprisingly enthusiastic response from investors. The book-build for the issuance closed within 48 hours – a record for a Korean equity-linked deal – and was said to be oversubscribed eight times. The exchange premium of 26% was also the highest in Asia.
November 01, 2000