The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.

All material subject to strictly enforced copyright laws. © 2022 Euromoney, a part of the Euromoney Institutional Investor PLC.

Asian boom

Real estate convertibles are the hot ticket
A new market in convertible sukuks

Europe’s record breaker

Issuance of equity-linked bonds from real estate companies in Asia has been strong for the past couple of years and has shown a marked increase in 2007. To date, there have been eight deals from real estate companies in Asia in 2007, with Hong Kong and Singapore issuance dominating. "A quarter of issuance this year has been from real estate companies, compared to 11% of the outstanding market," says Haidje Rustau, who is responsible for Asian convertibles research at Barclays Capital.

The reason for the growth of issuance is simply that the real estate sector is growing rapidly in the region. "Much of the focus is on assets in China," says Achintya Mangla, head of equity-linked origination for Asia at JPMorgan in Hong Kong. "In many cases, companies have exhausted their bank lines and at the same time the banking system has improved to such an extent that the equity-linked market has become available to them."

While many companies in Europe have been prompted to use the equity-linked market by the increased volatility of their shares – and therefore the greater optionality a convertible offers – Asian issuers tend to be more focused on the level of their share price, according to Rustau.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.


Unlimited access to and

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually


Unlimited access to and, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors


Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree