2020-04-04 IFR Asia

42 International Financing Review Asia April 4 2020

PHILIPPINES

DEBT CAPITAL MARKETS

› ADB SETS SINGLE TRANCHE RECORD

The Triple A rated ASIAN DEVELOPMENT BANK on

Tuesday priced a US$4.5bn two-year Global

bond, in its largest ever single-tranche

offering.

The 0.625% note priced at 99.909 to yield

0.671%, equivalent to mid-swaps plus 20bp

or Treasuries plus 45.3bp. Initial price

thoughts were mid-swaps plus 25bp area.

Final orders were over US$7bn, with 41%

placed to the Americas, 32% to Europe, the

Middle East and Africa, and 27% to Asia.

By investor type, central banks and official

institutions took 55%, banks 25%, and fund

managers and others 20%.

Goldman Sachs, Morgan Stanley and RBC

Capital Markets were bookrunners for the

SEC-exempt trade.

ADB plans to raise around US$25bn from

the capital markets in 2020.

› ABOITIZ POWER PLANS RETAIL BONDS

Power generator and distributor ABOITIZ

POWER has applied to the Securities and

Exchange Commission to issue up to

Ps9.55bn (US$188m) of retail bonds.

BDO Capital and First Metro Investment

are joint issue managers. BDO, First

Metro and China Bank Capital are joint lead

underwriters.

The issue is expected in the second or

third quarter off a Ps30bn shelf registration.

SINGAPORE

DEBT CAPITAL MARKETS

› ASPIAL REDEEMS BOND

Singapore-listed ASPIAL last Tuesday

redeemed the outstanding S$177.25m

(US$123.35m) of 5.3% retail bonds that had

matured, easing concerns over its cashflow

situation.

Bankers and credit analysts had

been worried that the property and

jewellery company would have problems

meeting full redemption in view of its

large debt maturities of S$745.7m this

year.

Aspial has been slowly reducing the

5.3% bond from an original issue size of

S$200m with small buybacks over the

past few months. It also managed to

raise S$50m from the sale of three-year

bonds at 6.5% on March 9, the last public

Singapore dollar bond before the markets

shut down on global volatility. The 6.5%

bonds were quoted at around 99.8 last

Thursday.

The company will now turn its

attention to a S$150m 5.25% retail bond

that will mature on August 28. That

bond dipped as low as 92.1 on March 23

before rebounding to 94.2 on Thursday

morning.

Kathmandu aims to boost liquidity

„ Loans Outdoor retailer seeks covenant waiver, equity funding

Lenders to KATHMANDU HOLDINGS have relaxed

and waived certain covenants subject to the

outdoor retailer completing an equity funding

of at least NZ$150m (US$90m), according

to the company’s filing to the New Zealand

stock exchange last Wednesday.

Kathmandu has won covenant waivers for

the periods ending July 31 2020 and January

31 2021, and a relaxation of certain covenants

for the period ending July 31 2021.

The company expects to have sufficient

liquidity to cover payments and meet capital

requirements for at least the next 12 months,

based on conservative assumptions, and

to be in a position to meet its amended

covenant test for the period ending July 31

2021.

Kathmandu’s total liquidity position will

get a boost to NZ$315m upon successful

completion of an equity fundraising of up to

NZ$207m, with no debt maturities before

November 2022.

The company is taking pre-emptive

action to remain strongly capitalised with

sufficient liquidity during the current market

uncertainty stemming from the coronavirus

pandemic.

Until trading conditions improve, it is

suspending its dividend, including the interim

dividend for the half year ended January 31

2020.

However, Kathmandu acknowledged that

it still faces a risk that the impact of Covid-

19 is worse than anticipated and may result

in non-compliance with covenants for the

period ending July 31 2021, or otherwise

trigger an event of default, and the company

is unable to obtain further support from

banks.

In such an eventuality, the company may

need to refinance its existing debt on less

favourable terms or take other actions to

comply with its covenants, which may have

a material adverse effect on its operating

performance and earnings, according to the

latest filing.

As at January 31, the company had a fully

drawn NZ$218m term loan and NZ$160m

revolving credit facility, of which NZ$86m

was drawn.

In January, Kathmandu closed syndication

of a A$375m (US$230m) three-year loan

backing its acquisition of Rip Curl Group.

Credit Suisse was the sole mandated lead

arranger, underwriter and bookrunner of the

senior secured borrowing, which offers a top-

level interest margin of 105bp over BBSY.

Kathmandu completed the acquisition of

Rip Curl on October 31.

MARIKO ISHIKAWA

Top bookrunners of all Philippine peso bonds

1/1/20 – 31/3/20

Amount

Name Issues Ps(m) %

1 HSBC 3 45,000.0 47.2

2 ING 2 18,448.0 19.4

3 Standard Chartered 2 8,050.0 8.5

4 BDO Unibank Inc 3 3,857.1 4.1

5 Unicapital Inc 1 3,700.0 3.9

6* BPI 2 2,357.1 2.5

6* Security Bank 2 2,357.1 2.5

6* RCBC 2 2,357.1 2.5

6* China Bk Capital Corp 2 2,357.1 2.5

10* Philippine National 1 2,142.9 2.3

10* Philippine Commercial Capital 1 2,142.9 2.3

Total 10 95,268.0

*Market volume

Proportional credit

Source: Refinitiv data SDC Code: AS10

Philippines global equity and equity-related

1/1/20 – 31/3/20

Amount

Name Issues US$(m) %

1* BDO Unibank Inc 1 125.7 50.0

1* HSBC 1 125.7 50.0

Total 1 251.3

Source: Refinitiv data

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