IFR Magazine - October 27, 2018

SOUTH KOREA

BROAD DEMAND FOR KEXIM KANGAROO

The EXPORT-IMPORT BANK OF KOREA (Aa2/AA/AA–)
attracted a peak order book in excess of
A$830m for last Tuesday’s A$500m
53M ûSALEûOFûlVE
YEARûmOATING
RATEû
Kangaroos arranged by ANZ, Mizuho and TD
Securities.
$EMANDûWASûBROAD
BASEDûWITHû!SIANû
Australian and EMEA investors taking 51%,
41% and 8%, respectively.
Asia bought a larger, 59% share of
IDENTICALLYûRATEDû+OREAû$EVELOPMENTû"ANKSû
!MûlVE
YEARû+ANGAROOû&2.ûISSUEDûONû
October 12. Australian accounts took 30% of
that trade and EMEA 11%.
Banks were allocated 66% of the new
+EXIMûNOTEûASSETûMANAGERSûûOFlCIALû
institutions 5% and others 4%.
The Kexim October 30 2023s priced inside
98bp area guidance at three-month BBSW
plus 95bp, which is 3bp tighter than the 98bp
MARGINûPAIDûBYû+$"ûWHOSEûNOTEûPERFORMEDû
strongly in the secondary market.
Kexim also paid just 2bp more than the
93bp spread for the A$2bn dual-tranche
DOMESTICûlVE
YEARûSALEûBYûSIMILARLYûRATEDû
National Australia Bank (Aa3/AA–/AA–) on
September 18.
Such a modest premium over Australia’s
MAJORûBANKSûREmECTSûAûMUCHûIMPROVEDû

geopolitical backdrop in the Korean

peninsula in recent months.

At its previous Kangaroo visit on February

7 2017, Kexim sold a A$400m dual-tranche

lVE

YEARûNOTEûATûBPûOVERûASSETûSWAPSûANDû

three-month BBSW. On February 27,

Australia and New Zealand Banking Group

PRINTEDûAû!BNûTWO

PARTûlVE

YEARûATûBPû

over.

LG DISPLAY TO START GREEN MEETINGS

LG DISPLAY has mandated Korea Development

Bank and Societe Generale as joint

bookrunners and lead managers for a US

dollar-denominated Green bond.

Fixed income investor meetings in Asia

and Europe will start on Monday for the Reg

S senior unsecured Green notes, which will

also have an unconditional and irrevocable

GUARANTEEûBYû+$"

The proposed notes are expected to be

rated AA by S&P.

KOSPO NAMES LEADS FOR SWISS

ROADSHOW

KOREA SOUTHERN POWER, rated Aa2/-/AA-, has

mandated BNP Paribas Suisse and UBS as lead

managers for a Zurich roadshow on October

30.

!LTHOUGHûmAGGEDûASûANûINVESTORûUPDATEû

THEREûMIGHTûBEûAûTRADEûINûTHEûOFlNGûIFû

levels suit.

EUROPE/AFRICA

KAZAKHSTAN

SOVEREIGN TO PLANT EURO PILLAR

KAZAKHSTAN has announced a roadshow for a

debut euro-denominated bond offering,

which could set a benchmark for other

issuers from the country to follow.

“It will not only allow the sovereign to

widen its investor base but will also give an

opportunity to other Kazakh corporates and

Kazakh-related entities to explore euro

funding as well,” said one banker familiar

with the matter.

“As soon as you have a sovereign

reference point, it is much easier for an

issuer to operate in that currency.”

The sovereign is looking to place a 10-year

BONDûANDûASûITûWILLûBEû+AZAKHSTANSûlRSTû

foray into the common currency, it is

expected there will be an element of price

DISCOVERYûINûORDERûTOûlNDûTHEûCLEARINGûLEVELû

for the trade.

Although the bond has 144A

documentation, Kazakhstan will be

concentrating its marketing efforts on

continental Europe and London given the

currency of the issue. Fixed income

meetings will run all this week.

Oct 22 2018 LTA S$1bn Oct 30 2053 3.43 100 SOR+31.9 3.43

Oct 23 2018 KEXIM A$500m Oct 30 2023 3mBBSW+95 100 3mBBSW+95 -

Oct 23 2018 Tenaga Nasional Berhad

(sukuk)

US$750m Nov 1 2028 4.851 100 T+170 4.851

Oct 24 2018 KHFC (Covered) €500m Oct 30 2023 0.75 99.927 MS+40 / B+94.3 0.765

Oct 24 2018 State Power Investment Corp US$300m Oct 30 2021 4.25 99.969 T+135 4.261

Oct 24 2018 State Power Investment Corp US$500m Oct 30 2023 4.65 99.947 T+170 4.662

Oct 24 2018 Sinopec HK$1.2bn Oct 31 2020 3.15 100 - 3.15

Oct 24 2018 Sinopec Rmb1bn Oct 31 2021 4.5 100 - 4.5

Oct 24 2018 Oman Sukuk US$1.5bn Oct 31 2025 5.932 100 MS+280 5.932

Oct 24 2018 Tabreed Sukuk US$500m Oct 31 2025 5.5 100 MS+234 5.5

Oct 24 2018 Tunisia €500m Oct 31 2023 6.75 98.975 MS+664 7

Oct 25 2018 Gansu Highway US$150m incr

(US$500m)

Aug 2 2021 6.25 100.413 - 6.08

Oct 25 2018 Ukraine US$750m Feb 1 2024 8.994 100 T+601.9 9

Oct 25 2018 Ukraine US$1.25bn Nov 1 2028 9.75 100 T+661.3 9.75

Oct 26 2018 Banco de Chile SFr115m Nov 21 2023 0.568 100 MS+65 0.568

GLOBAL EMERGING MARKETS BOND DETAILS: WEEK ENDING 26/10/2018

Pricing date Issuer Amount Maturity Coupon (%) Reoffer Spread (bp) Yield (%)