COUNTRY REPORT SOUTH KOREA18 with holders of its 4.75% bonds due
March 2020 (series 006) and 5.35% bonds
due October 2021 (series 007). The bonds’
maturities were extended by three years
after investors gave their consent in
January last year. The outstanding amount
of series 006 is S$95m and that of series 007
is S$47.5m after partial redemptions were
made in the past year.
The offshore marine services company
had hoped that the three-year extension
would give it sufficient time to recover as
crude oil prices increased. But the recovery
is taking longer than expected, which
means that it was unable to hit the business
volume targets set out in the January 2017
consent solicitation.
A number of offshore support vessel
and platform supply vessel shipbuilding
projects were also cancelled, leading to a
total cash outflow of S$199m.
“The company will likely be unable to
meet the bank loans and bond scheduled
repayment obligations as repayments
over the next few years exceed the
incoming cashflows,” said ASL Marine
in its bondholder presentation note.
Consequently, some revolving credit
facilities have not been renewed,
while working capital lines have been
hampered.
In last year’s restructuring, banks
extended loan maturities and granted a
five-year term loan facility. At the same
time, the company undertook a S$25.17m
rights issue.
EQUITY CAPITAL MARKETS
› MAPLETREE LOGISTICS RAISES S$375MMAPLETREE LOGISTICS TRUST has raised S$375m
(US$274m) after pricing a follow-on offer at
S$1.21, compared with the S$1.196–$1.234
range.
The transaction comprised a base deal of
S$375m with an upsize option of S$100m
that was not exercised. Books were covered
2.4 times.
The final price represents a discount of
4% to the pre-deal closing price of S$1.26.
The proceeds will be used to finance the
acquisition of five logistics properties in
Singapore.
BNP Paribas, Citigroup, DBS, Goldman Sachs
and HSBC were the bookrunners.
In May, Mapletree Logistics raised
S$220m through a follow-on offer priced at
S$1.197.› KINDERWORLD PLANS IPO IN NOVEMBEREducation service provider KINDERWORLD
EDUCATION GROUP is planning to launch a
Singapore Exchange IPO of up to S$70m in
November, people with knowledge of the
transaction have said.
The company, founded in Singapore,
runs schools in Vietnam and is planning
to expand in South-East Asia, China and
Australia.
DBS is the sole global coordinator and
bookrunner with Maybank.Last year, education provider
MindChamps PreSchool conducted a S$49m
IPO at S$0.83 per share. The shares were
quoted at S$0.63 today.SOUTH KOREA
EQUITY CAPITAL MARKETS
› CELLTRION HEALTHCARE PRICES BLOCKOne Equity Partners has priced a
block in Korean biopharmaceuticals
company CELLTRION HEALTHCARE around
the mid-point of an indicative price
range to raise W401bn (US$358m), a
person with knowledge of the transaction
said.
A total of 4.4m shares were sold at
W91,200 versus an indicative price range
of W90,100–W92,100. The price translates
into a 7.9% discount to the pre-deal close of
W99,000.
The book was multiple times
oversubscribed. “Allocation was good
towards the top of the book with significant
scale back across all orders,” the person
said.
One Equity Partners was the second
largest shareholder in Celltrion with an
18.06% stake before the deal.
Celltrion’s shares fell 3.74% lastFrasers Property nets Singapore Green loan
Loans Developer to refinance existing debt for Frasers TowerSingapore developer FRASERS PROPERTY has
completed a maiden S$1.2bn (US$880m)
five-year Green loan, the first syndicated
secured transaction of this kind from South-
East Asia under Green Loan Principles.
BNP Paribas, DBS Bank, ING Bank,
Maybank, OCBC and United Overseas Bank
were the mandated lead arrangers of the
financing. BNP Paribas and ING were the
coordinators, while UOB and DBS were the
facility and security agents, respectively.
The proceeds of the loan will be used
to refinance existing loans relating to
the development of Frasers Tower, a
new 38-storey premium office and retail
development located on Cecil Street in
Singapore’s central business district. The
tower has received the Singapore Building
and Construction Authority’s Green Mark
Platinum Award, in recognition of itsenvironment-friendly features.
“Frasers Tower is a key addition to Frasers
Property’s portfolio of environmentally-
friendly buildings in Singapore, and it
is befitting that the property is being
funded by a financial instrument that is
aligned to the green concept,” said Panote
Sirivadhanabhakdi, group CEO at Frasers
Property, in the press release.
The loan conforms to the GLP, a framework
that was launched in March by the Loan Market
Association and the Asia-Pacific Loan Market
Association with the aim of creating consistency
across the Green loan market.
“With the rising interest in sustainability
among real estate investors, tenants and
regulatory bodies, there is room for more
green loans within the real estate sector in
this region,” said Robert Scholten, head of
real estate, ING wholesale banking Asia-Pacific.
Green loans are increasing in popularity.
In August, Leo Paper Group (Hong Kong) Ltd
raised a HK$350m (US$46m) Green loan
from seven banks to invest in environmental
protection projects in China from 2018 to
2020.
Asia’s first socially responsible loans
were signed in March, with Singapore-listed
Olam International completing a US$500m
sustainability-linked revolving credit facility
and Hong Kong’s New World Development
obtaining a HK$3.6bn Green loan.
Frasers Property, which is listed on
the main board of the Singapore Stock
Exchange, owns, develops and manages a
diverse integrated portfolio of properties with
total assets of approximately S$32bn as of
June 2018.
ALASDAIR REILLY, CHIEN MI WONG