Loss-making hyundai heavy industries has raised US$221.6m from the sale of zero-coupon exchangeable bonds, with the help of a guarantee from policy lender Korea Development Bank. The bonds, exchangeable into shares of hyundai merchant marine, were launched last Wednesday at aggressive terms. The five-year, put-three exchangeable bonds offered no yield and were marketed at a conversion premium of 30.0%-37.5%, before pricing at the top of that range. Despite being the world's largest shipbuilder, HHI is hardly the most attractive name in the market. In 2014, the company posted an operating loss of W3.25trn (US$2.9bn), the largest in its history. It recorded another operating loss of W192bn for the first quarter of the year.
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