company is aiming to embark on the IPO
early next year,” the person said. “There’s
very little chance that it can be listed this
year,” he added.
IFR reported in January that Hyundai
Oilbank planned to raise at least US$1bn
from the IPO. The size of the deal could
now be 20%–30% less because of market
volatility, the person said.
South Korea’s benchmark Kospi Index is
down 10.63% in the year to date based on
last Tuesday’s close of 289.91.
Lubricant oil maker SK Lubricant and game
software developer Kakao Games have both
withdrawn listing plans this year.
South Korean companies are facing a
longer wait to go public after the Financial
Supervisory Service stepped up its
surveillance of IPOs following its disclosure
in May of a breach of accounting rules ahead
of Samsung Biologics’ 2016 IPO. Hyundai
Oilbank, South Korea’s smallest refiner
by capacity, has a 390,000-barrels-per-day
refinery in Daesan, southwest of Seoul.
Hyundai Robotics, the holding company
of Hyundai Heavy Industries Group, holds a
91% stake in Hyundai Oilbank.
Hana Daetoo Securities and NH Investment
& Securities is leading the Hyundai Oilbank
float. The other joint lead managers are
Bank of America Merrill Lynch, Citigroup,
Shinhan and MiraeAsset Daewoo Securities.
› ROBOTIS LAUNCHES KRX IPO
Korean robot manufacturer ROBOTIS has
started bookbuilding for a KRX IPO of up to
W19.2bn (US$17m).
The company is selling 1.7m new shares
in an indicative price range of W9,200–
W11,300 each. The range gives Robotis
a market capitalisaion of W103.5bn–
W127.1bn.
Books opened last Wednesday and closed
Thursday.
Robotis shares are due to start trading at
the end of this month.
Founded in 1999, Robotis builds robots
for entertainment, research, education and
other applications, encompassing software,
accessories and hardware.
LG Electronics said at the beginning of
this year it had bought a 10% equity interest
in Robotis for W9bn. The two companies
have been jointly developing self-driving
modules for mobile robots.
Robotis posted a net profit of W1.7bn
for the first half of 2018, increased from
W647m a year earlier.
Mirae Asset Daewoo Securities is leading the
deal.TAIWAN
SYNDICATED LOANS
› SIX UNDERWRITE KKR LOANSix banks have underwritten a NT$31.2bn
(US$1bn) five-year loan to back KKR’s
leveraged buyout of Taipei-listed specialty
chemicals maker LCY CHEMICAL.The banks are: CTBC Bank, Bank SinoPac,
Cathay United Bank, E.Sun Commercial Bank,
KGI Bank and Taishin International Bank.
CTBC is the mandated lead arranger and
bookrunner, while the other five are MLAs.
The borrowing offers an interest margin
of 145bp over Taibor.
Goldman Sachs Bank USA is arranging
the debt financing, while Goldman Sachs
(Asia) is the buy-side adviser, according to
announcements from KKR and LCY in July.
The loan is expected to be launched into
general syndication after the LBO obtains
approval from regulators in China and
Taiwan, including the latter’s Investment
Commission, which is part of the Ministry
of Economic Affairs. Shareholders of LCY
approved the LBO in early September.
KKR is leading a consortium of investors,
including employees and family members
of LCY’s founders, for the LBO, which
values the target at NT$47.8bn.
The consortium will pay NT$56 per
share, a 17.3% premium to LCY’s closing
price on July 20, according to the latter’s
press release on July 22.
Upon completion, KKR will hold a
majority and controlling interest in LCY,
which will be delisted from the Taiwan
Stock Exchange.› TA CHEN STAINLESS WRAPS UP REFITaiwanese valve maker TA CHEN STAINLESS PIPE
is wrapping up a NT$10bn five-year loan.
Chang Hwa Commercial Bank is the mandated
lead arranger and bookrunner of the deal,
which has a NT$6.55bn term loan trancheCapitaLand raises sustainability-linked loan
Loans Borrower completes first ESG facility from real estate sectorCAPITALAND has completed a S$300m
(US$217m) multi-currency sustainability-
linked loan from DBS Bank, the first from
Asia’s real estate industry.
The five-year term loan and credit facility
extends beyond the conventional concept
of being green or attaining a green rating, it
said. The loan is linked to CapitaLand’s listing
on the Dow Jones Sustainability World Index,
which tracks the performance of the world’s
leading companies on environmental, social
and governance efforts.
The financing’s interest rates will be
reduced on a tiered basis, contingent on the
borrower’s performance measured against
ESG indicators based on the Corporate
Sustainability Assessment of RobecoSAM- an investment specialist focused on
sustainability investing – and a retained
listing on DJSI World.
“Dovetailing CapitaLand’s ESG efforts with
our cost of funding further demonstrates our
commitment to embed sustainability into our
business in the long run,” said Andrew Lim,
CFO of CapitaLand Group.
Funds will be used for general corporate
purposes.
In its latest Global Sustainability
Report, CapitaLand reported a 29.4%
reduction in carbon emissions intensity
since 2008, exceeding its 2020 target of
23%. The group has achieved 23.4% and
24.1% energy and water reduction per
m2 from base year 2008, respectively,
exceeding its 2020 target of 20%. This
has resulted in S$140 million of utilitiescost avoidance since 2009.
Agribusiness group Wilmar
International in August signed a US$100m
sustainability-linked revolver, also with
DBS. The interest rate of the two-year
revolver is pegged to a series of ESG
performance metrics.
In April, Olam International raised a
US$500m three-year sustainability-linked
revolver, the first loan in Asia to tie the
interest margin to the borrower’s ESG.
Headquartered and listed in Singapore,
CapitaLand owned and managed a global
portfolio of over S$93bn as of June 30,
comprising integrated developments,
shopping malls, lodging, offices, homes, real
estate investment trusts and funds.
CHIEN MI WONG