COUNTRY REPORT SOUTH KOREAwith holders of its series 003 to 008 bonds
to clarify and elaborate on a consent
solicitation launched on October 23.
The solicitation seeks to amend and
waive certain covenants on or before
November 20 related to six outstanding
bonds of a combined S$575m (US$422.2m).
A formal bondholder meeting will be held
on November 20.
During last week’s meeting, Ezion
addressed a redemption option on the
series 007 under which holders can redeem
the bonds if trading in the company’s
shares ceased.
As IFR reported in late October, this
is similar to the clause on a DBS-backed
bond in series 009, on the basis of which
major holder Ravi Muraka filed an
originating summons last month for a court
declaration on whether or not trading in
Ezion’s shares had indeed ceased.
Ezion suspended trading in its shares
on August 14, but argued that it did not
amount to cessation of trade or listing.
If the court declares that the suspension
triggers the put option in series 009, it
would rigger the option in series 007.
An investor holding the 007 bond said
Ezion’s financial adviser, RSM Corporate
Advisory, had assured him that the delisting
put option would be retained in the
refinanced bond agreements for series 003
to 008.
Among other revised terms, Ezion will
improve the conversion price to S$0.2763
from the original S$0.307, allow a longer
conversion period of four years, versus
the current three years, and provide more
incentives to bondholders for an early
consent by November 15 on its solicitation.EQUITY CAPITAL MARKETS
› KEPPEL-KBS IPO DRAWS INTERESTKEPPEL-KBS US REIT’s US$448m Singapore
Exchange IPO has drawn strong
institutional interest, with the top 10
accounts being allocated 85% of the units
made available.
The institutional book closed last
Wednesday and was covered on interest
from private-banking clients and real-estate
funds.
The REIT is selling 509.1m units at a
fixed price of USS$0.88 each. Of these,
cornerstone investors will buy 246.4m.
Other institutional investors have been
allocated 228.7m and retail investors 34m.
There is a greenshoe option of 31.4m units.
The distribution yields are projected at
6.8% for 2018 and 7.2% for 2019.
The retail offer runs on November 2-7
and the shares start trading on November 9.
US-based KBS Pacific Advisors and
Singapore’s Keppel Capital are the sponsors
of the REIT, which will comprise 11 US-
based office assets. The two sponsors will
each own 9.5% of the REIT after the IPO.
The cornerstone investors are AffinHwang Asset Management, Credit Suisse
(on behalf of certain PB clients), DBS Bank,
DBS Bank (on behalf of certain PB clients)
and Hillsboro Capital.
DBS is the issue manager and the joint
bookrunner with Bank of America Merrill
Lynch, Citigroup and Credit Suisse.› YOMA LAUNCHES S$69M PLACEMENTYOMA STRATEGIC HOLDINGS has launched a share
placement, targeting S$69m (US$51m), at a
price range of S$0.53–$0.54 each.
The company is selling 128m shares, or
6.9% of its enlarged equity capital.
The price range represents a 7.7%–9.4%
discount to the pre-deal close of S$0.585.
Yoma has interests in the real estate,
agricultural and auto dealership businesses
in Myanmar and China.
Citic CLSA is the sole bookrunner.SOUTH KOREA
DEBT CAPITAL MARKETS
› HARVEST 2022 TAP DRAWS US$540MHARVEST OPERATIONS has added US$200m
to its 3.0% due 2022 KNOC-guaranteed
notes at Treasuries plus 115bp to lift the
outstanding size to US$485m.
The tap drew orders in excess of
US$540m from 39 accounts, 85% of which
were out of Asia and the rest out of EMEA.
Asset and funds were allocated 71% of the
notes, with banks next at 28% and the rest
assigned to private banks and others.
The tap was marketed on Wednesday
morning at Treasuries plus 135bp area.
The original notes were issued in
September at Treasuries plus 127.5bp
with a guarantee from state-owned Korea
National Oil Corp, which is rated Aa2/AA
(Moody’s/S&P).Top bookrunners of Singapore syndicated loans
1/1/17 – 31/10/17
Amount
Name Deals US$(m) %
1 Maybank 5 1,719.8 12.2
2 DBS 8 1,321.4 9.4
3 ANZ 8 991.0 7.0
4 UOB 3 653.6 4.6
5 Bank of China 4 601.2 4.3
6 HSBC 5 588.6 4.2
7 ING 5 588.1 4.2
8 ICBC 3 584.0 4.2
9 ABN AMRO 4 582.0 4.1
10 Cooperatieve Rabobank 4 546.9 3.9
Total 31 14,073.4
- Based on market of syndication and market total
Proportional credit
Source: Thomson Reuters SDC Code: S16b
Singapore global equity and equity-related
1/1/17 – 31/10/17
Amount
Name Issues US$(m) %
1 DBS 15 1,314.5 24.7
2 HSBC 6 542.1 10.2
3 Citigroup 4 452.0 8.5
4 Morgan Stanley 2 427.3 8.0
5 Credit Suisse 3 329.2 6.2
6 BAML 3 322.8 6.1
7 UBS 2 317.8 6.0
8 UOB 6 295.8 5.6
9 OCBC 3 230.6 4.3
10 Goldman Sachs 1 215.3 4.0
Total 52 5,326.2
Source: Thomson Reuters
Top bookrunners of all South Korea Won bonds
1/1/17 – 31/10/17
Amount
Name Issues Won(m) %
1 KB Financial 496 23,792,023.0 17.4
2 Mirae Asset Daewoo 366 13,831,289.0 10.1
3 Kyobo Life 236 13,382,815.0 9.8
4 NH Inv & Sec 219 11,009,746.0 8.1
5 Korea Investment 354 10,934,825.0 8.0
6 Hana Financial 72 8,301,180.0 6.1
7 Dongbu Sec 187 7,465,669.2 5.5
8 SK Sec 130 6,029,000.0 4.4
9 Samsung Sec 53 5,461,432.0 4.0
10 Bookook Sec 103 3,279,181.7 2.4
Total 3,809 136,530,150.5
*Market volume
Proportional credit
Source: Thomson Reuters SDC Code: AS22Top bookrunners of South Korea syndicated loans
1/1/17 – 31/10/17
Amount
Name Deals US$(m) %
1 KDB 12 2,114.7 78.3
2 KB Financial 1 283.3 10.5
3 DBS 1 160.0 5.9
4* Samsung Sec 1 47.3 1.8
4* NH Inv & Sec 1 47.3 1.8
4* Mirae Asset Daewoo 1 47.3 1.8
Total 14 2,699.9
* Based on market of syndication and market total
Proportional credit
Source: Thomson Reuters SDC Code: S17b