4HEûFUNDSûRAISEDûWILLûRElNANCEû5/"û
Sydney branch’s loan book with
outstanding A$300m and A$400m notes
set to mature in September and November
this year.
In March 2017, UOB Sydney issued a
A$300m four-year FRN at three-month
BBSW plus 81bp, six months after it priced
ANOTHERû!MûFOUR
YEARûmOATERûTOûYIELDû
64bp over three-month BBSW.
TEMASEK LIFTS MTN PROGRAMMESingapore state-owned TEMASEK HOLDINGS has
increased the size of an existing Global MTN
programme to US$20bn from the current
limit of US$15bn.
The programme was established by the
sovereign wealth fund in 2005 at an original
US$5bn. It has been increased over the years
with Temasek Financial I as the issuer.
Under the programme, the notes will be
unconditionally and irrevocably guaranteed
by the parent.
Deutsche Bank, Goldman Sachs Singapore,
HSBC and Morgan Stanley are arrangers, as
well as dealers with Barclays, BNP Paribas,
BoFA Merrill Lynch, Citigroup, Credit Suisse, DBS
Bank, JP Morgan, Standard Chartered Bank and
Standard Chartered Bank Singapore.
Temasek’s last foray into the debt
markets was in February 2016, when it sold
€1.1bn (US$1.28bn) of six and 12-year bonds.
It recently released details of its
investments, which showed its portfolio
value rose 12% to a record S$308bn
53BN ûINûITSûLASTûlSCALûYEAR
SOUTH KOREA
KHNP GREEN BOND PROVES
POPULAR IN US
KOREA HYDRO & NUCLEAR POWER, rated Aa2/AA
(Moody’s/S&P), added to a run of South
Korean bonds that have proved popular
WITHû53ûINVESTORSûWITHûAû53MûlVE
YEARû
Green bond.
American investors bought 51% of last
Wednesday’s new issue, which priced at
Treasuries plus 112.5bp.
That built on the 35% US allocation on a
US$500m offering a week earlier from Korea
East-West Power, which shares the same
ratings as KHNP. Both are state-owned utilities.
A banker on the KHNP deal explained that
US investors were seeking defensive assets
during a period of volatile markets.
“They’re looking for something to protect
the portfolio rather than for ways to make a
PROlT vûHEûSAIDûh)NVESTORSûTHINKûTHATû+OREAû
will be one of the least loss-making
investments if volatility continues.”
“They’ve made a choice to buy these
defensive assets instead of keeping their
liquidity in cash and paying for the
opportunity costs.”
4HEûûSûDREWûAûlNALûORDERûBOOKû
of US$2.27bn, after peaking at US$3.46bn.
Investors in Asia and EMEA took 29% and
20% of the 144A/Reg S notes, respectively.
By investor type, asset managers bought
63% of the bonds, insurers 16%, and banks,
central banks and others accounted for 12%,
7% and 2% respectively.
The bonds were bid 2bp–3bp inside
reoffer the following day.
The Green format also helped drive
interest. One banker on the deal said green
investors tend to be less price sensitive,
which in turn gives issuers more room to
push pricing further.
4HEûlNALûPRICINGûWASûBPûINSIDEûINITIALû
guidance of Treasuries plus 140bp area.
4HEûISSUEûISû+(.0SûlRSTû'REENûBOND û
issued in an attempt to highlight the
company’s commitment to developing
renewable energy sources alongside its
nuclear portfolio.
Proceeds from the latest bond offering
WILLûBEûUSEDûTOûlNANCEûANDûRElNANCEû
renewable energy, lower carbon transport,
IMPROVEûENERGYûEFlCIENCYûANDûTOûFUNDûGREENû
building projects. Independent opinion
provider Vigeo Eiris said the Green bond
framework would contribute to climate
change mitigation.Vigeo said KHNP’s notes made a
“reasonable” contribution to sustainability,
had a “reasonable” capacity to mitigate
environmental risks and scored them as
“moderate” on the social and governance
pillars.
BNP Paribas, Citigroup, HSBC, JP Morgan,
Korea Development Bank and UBS were joint
bookrunners.SOUTH KOREA MANDATES BANKS
FOR SOVEREIGN BONDThe REPUBLIC OF KOREA (Aa2/AA/AA–) has
mandated Bank of America Merrill Lynch,
Citigroup, Credit Agricole, HSBC and Korea
Development Bank to arrange its next
sovereign bond issue.
While the RFP did not specify the
currency or tenor, bankers expect South
Korea to issue a new US dollar benchmark,
most likely a US$1bn 10-year bond.
South Korea is expected to return to the
international markets as early as September
after inviting bookrunners to pitch for an
offshore sovereign bond, IFR has reported.
It has a Rmb3bn (US$450m) three-year
Panda bond due December 16.
The country’s previous foray in
international bond markets came in January
2017 via a US$1bn 10-year SEC-registered
bond, which priced at Treasuries plus 55bp.
The 2027 bond is quoted at Treasuries plus
72bp on Tradeweb.
Joint bookrunners on the last deal were
"ANKûOFû!MERICAû-ERRILLû,YNCH û#ITIGROUP û
Goldman Sachs, HSBC (B&D), JP Morgan,
KDB and Samsung Securities.SHINHAN FINANCIAL POSTPONES
AT1 PLANSHINHAN FINANCIAL GROUP, rated A1 (Moody’s),
HASûDECIDEDûTOûDELAYûPLANSûTOûISSUEûITSûlRSTû53û
dollar-denominated Additional Tier 1 bonds.
4HEû3OUTHû+OREANûlNANCIALûGROUPûHADû
been eyeing a window to launch the Basel
III-compliant Reg S notes, but decided not to
do so because of wide secondary spreads.EMERGING MARKETS ASIA-PACIFICPricing steps NIP (bp) Book size Ratings Bookrunners Distribution
T+215 area - US$1.3bn Baa2/-/BBB- DBS/StCh Asia 86%, EMEA 14%. FM/AM 61%, Bank
29%, Ins 7%, PB/Other 3%.
9.3% area,
9.15% (+/-5),
9.1%
20 US$3.25bn B3/-/B DB/GS/ICBC -3mBBSW+83 area - - Aa1/AA-/AA- ANZ/NAB/UBS/UOB -
T+140 area,
T+115 (+/-2.5)
- US$2.7bn Aa2/AA BNPP/Citi/HSBC/JPM/KDB/UBS US 51%, Asia 29%, EMEA 20%. AM
63%/Insurers 16%/ Banks 12%/CBs 7%/
Others 2%
100 - Ba3/BB BNPP/BOCI/BOCOMI/CEB Intl/CICC/
CMBI/Guotai Junan/HSBC/StCh/UBS
T+160 area - >US$3.5bn A3/A-/A- CS/HSBC/MS -
Pricing steps NIP (bp) Book size Ratings Bookrunners Distribution