Kakao returns home for CB issue

Kakao Corp has become the second Korean issuer in the space of a week to opt for a domestic equity-linked deal, announcing plans to raise W250 billion $219 million.

The Kosdaq-listed company’s decision follows hot on the heels of GS Engineering Construction GS EC, which is also raising W250 billion from a domestic convertible bond to refinance a previous dollar-denominated deal.

Unlike GS EC, Kakao has not previously issued in the international markets. However, a number of convertible bond traders told FinanceAsia the chat app and web search operator had been sounding out an international deal after it...