Singapore blocks Noble relisting
Restructuring MAS, SGX RegCo threaten workout over accounting probeBY DANIEL STANTONSingapore’s central bank
and exchange regulator are
refusing to allow NOBLE GROUP
to transfer its listing status
after its restructuring, in the
latest blow to the commodities
trader’s drawn-out and complex
workout.
The block on a relisting
of “new Noble” comes after
Singaporean authorities
launched an investigation
into the group’s accounting
practices last month, only
weeks before the group was
due to complete its debt-for-
equity restructuring. If not
resolved, the move could
cause the company to file for
administration.
On Friday, Noble said that
the development was “very
disappointing”, but that it
intended to complete the
restructuring, other than the
transfer of the company’s
listing status on Singapore
Exchange. In order to do so,
the board “may implement the
restructuring through a court-
appointed officer,” Noble said.The decision by the Monetary
Authority of Singapore and
Singapore Exchange Regulation
follows a review of the findings
so far from the ongoing
investigations in Noble and
its subsidiary Noble Resources
International by MAS, the
Commercial Affairs Department
of the Singapore Police Force,and the Accounting and
Corporate Regulatory Authority.
MAS and SGX RegCo said
last Thursday that Noble had
submitted to SGX RegCo a
set of simulated financial
statements that showed the net
asset value of the new Noble
entity could be 45% lower
at March 31 than previouslyreported, taking into account
potential non-compliance with
accounting standards that was
pointed out by ACRA in a letter
last month.
They said that the NAV
could be reduced even further,
depending on the outcome of
investigations by CAD and MAS,
which are also looking at otherareas in connection with the
preparation and disclosure of
Noble’s financial statements,
including the valuation of
commodities contracts.
“MAS and SGX RegCo have
concluded that there are
significant uncertainties about
the financial position of New
Noble,” the two said in a jointstatement.
“It would be imprudent to
allow the re-listing as investors
will not be able to trade in
New Noble’s shares on an
informed basis. MAS and SGX
RegCo will therefore not allow
the re-listing of New Noble to
proceed.”
Noble’s restructuring had
been due to become effective on
November 26 and the trading
of shares in the new entity on
November 27, but this was
delayed by the announcement
of the investigation by the
Singapore authorities.
Noble said at the time it
had agreed extensions until
December 11 with an ad hoc
creditor group and Deutsche
Bank under its schemes of
arrangement in England and
Bermuda, as well as under
its restructuring support
agreement with majority
creditors Deutsche and ING.ADMINISTRATION THREAT
Earlier, Noble had said that the
alternative to the restructuring
was filing for administration
in the UK, where the company
is now headquartered. It
assumed that a court-appointed
administrator would carry out
the restructuring on much the
same terms for creditors, butGazprom taps into Tokyo
Bonds Russian gas giant seals first yen bond since 2007BY TAKAHIRO OKAMOTORussia’s GAZPROM expanded its
funding network to a major
new market last week with its
first bond issue in Japan for
more than 10 years.
The ¥65bn (US$576m) 10-
year Samurai bonds, with a
guarantee from the Japan Bank
for International Cooperation,
presented a rare opportunity
for Japanese investors and
allowed the Russian gas giant to
diversify its investor base.
The opportunity for a yen
deal came on the back of
an improving relationship
between Russia and Japan.“This trade came in the
context of government-to-
government relationships,” said
a banker on the deal.
Gazprom last sold yen bonds
in November 2007, when its
funding entity Gaz Capital
issued ¥20bn three-year notes
and ¥30bn five-year notes, with
no credit support. More recently,
it has built a relationship with
JBIC: in September this year,
a working meeting took place
between Gazprom management
committee chairman Alexey
Miller and JBIC governor Tadashi
Maeda at the Eastern Economic
Forum in Vladivostok.
Gazprom’s recent attemptsto diversify its funding mix
include a CHF750m (US$754m)
five-year bond in February, a
€750m (US$852m) eight-year
in March, and a €1bn long five-
year in November.
The new yen deal, issued
by funding entity GazAsia
Capital, is a 1.01% 10-year
Samurai bond. The deal is a
private placement for qualified
institutional investors only, and
comes with no credit rating.
Official marketing began on
Monday at 0.95%–1.10%, and
the coupon guidance narrowed
to 0.95%–1.07% on Tuesday,
0.95%–1.01% on Wednesday and
landed at 1.01% on Thursday.The final price came as
little surprise after Gazprom
CFO Alexander Ivannikov told
reporters a week earlier that
guidance would be around
1%, according to Russia’s
Interfax news agency. However,
Ivannikov’s predictions of a
roughly US$1bn size proved to
be exaggerated.
On the back of the positive
response from investors, the
book built to over ¥80bn, but
the deal size was capped.
Many investors were
reluctant as JBIC is providing a
full guarantee on the principal,
but only a partial guarantee on
the coupon payments.News
“MAS and SGX RegCo have concluded that there
are significant uncertainties about the financial
position of New Noble. It would be imprudent to
allow the re-listing as investors will not be able to
trade in New Noble’s shares on an informed basis.
MAS and SGX RegCo will therefore not allow the
re-listing of New Noble to proceed.”