Germany's Arcandor has become the first issuer to launch a convertible bond in Europe in almost a month as investor pessimism about the impact of inflation on the macro economic outlook has hit the market.
Retail and tourism company Arcandor launched a five-year bond exchangeable into the stock of tourism group Thomas Cook yesterday, which could raise â¬300m. The issuer is a major shareholder in the UK-based travel agency and said in a statement that the proceeds will go toward creating "more financial leeway for our growth strategy and restructuring of existing loans".
