the election campaign, it did a U-turn in
August and shelved the plan until the
economy improved.
Likewise, the government had to step
BACKûFROMûITSûTHREATSûTOûCANCELûTHEû+UALAû
Lumpur-Singapore high-speed rail link,
agreeing to postpone construction for two
years instead.
Bond issuance has stalled amid the
uncertainty. Some M$72.9bn of bonds
WEREûSOLDûINûTHEûlRSTûTHREEûQUARTERSûOFûTHISû
YEAR ûDOWNûûFROMûLASTûYEARû-UCHû
of the decline came in government-
guaranteed bond offerings, which tumbled
TOû-BNûINûTHEûlRSTûNINEûMONTHSûFROMû
last year’s M$30.3bn during the
corresponding period.
Corporate issuers facing similar
uncertainties are also holding off, causing a
once heavy pipeline of deals to dry up, said a
DCM banker.
Some investors are also disappointed.
“There is a huge dearth of corporate
bonds in the market,” said an institutional
investor. “We have requested some
companies to move forward with their bond
sales, but not knowing what the
government will do next is making them
wary about selling before the budget is
announced. They don’t know if their
industries will be hit and they don’t want to
make any business plans until the policies
are clearer.”
The new government is due to release its
lRSTûFEDERALûBUDGETûONû.OVEMBERû
SINGAPORE
SP GROUP TO MEET INVESTORSSP GROUP TREASURY, a wholly owned subsidiary
of SINGAPORE POWER ûHASûPICKEDûlVEûBANKSûTOû
ARRANGEûlXEDûINCOMEûINVESTORûMEETINGSû
in Asia, Europe and the US, starting on
October 29.
The banks are BNP Paribas, Credit Agricole,
DBS Bank, Mizuho Securities and Morgan Stanley.
Singapore Power is rated Aa2 (stable) by
Moody’s and AA (stable) by S&P.
INTERPLEX PICKS THREE FOR
US DOLLARS
INTERPLEX HOLDINGS has appointed Standard
Chartered, DBS Bank and United Overseas Bank
ASûJOINTûGLOBALûCOORDINATORS ûJOINTûLEADû
MANAGERSûANDûJOINTûBOOKRUNNERSûFORûAû53û
dollar bond issue.
Fixed income investor meetings in
3INGAPORE û(ONGû+ONGûANDû,ONDONûWILLû
COMMENCEûONû-ONDAYûFORûTHEûlXED
RATE û
senior notes offering.
The Reg S notes will be issued under the
COMPANYSûRECENTLYûESTABLISHEDû53Mû
guaranteed medium-term note programme
and have expected ratings of Ba3/BB–/BB–.
Singapore-based Interplex Group is a
manufacturer providing design services,
prototyping and production capabilities to
other companies.SOUTH KOREA
KOOKMIN BLAZES ESG TRAILKOOKMIN BANK (A1/A+/A) on Tuesday priced a
US$300m three-year Sustainable bond issue
at Treasuries plus 80bp after drawing orders
of over US$1.9bn from 138 accounts.
4HEûlRSTû3USTAINABLEûBONDûFROMûAû3OUTHû
+OREANûlNANCIALûINSTITUTIONûISûALSOû
+OOKMINSûlRSTûOFFSHOREûISSUEûSINCEû
September last year.
0RICINGûCAMEûATûTHEûTIGHTûENDûOFûlNALû
GUIDANCEûOFû4REASURIESûPLUSûBPnBP ûANDû
inside the initial announcement of
4REASURIESûPLUSûBPûAREA
!SIANûINVESTORSûBOUGHTûûOFûTHEû2EGû3û
NOTESûANDû%UROPEANûINVESTORSûû!SSETû
managers and fund managers took a
COMBINEDû ûBANKSû ûSOVEREIGNSû û
and private banks and other investors a
COMBINEDû
The senior unsecured Reg S notes are
expected to be rated A1/A+ (Moody’s/S&P).
0ROCEEDSûWILLûBEûUSEDûTOûlNANCEûANDORû
RElNANCEûGREENûANDûSOCIALûPROJECTSûINû
ACCORDANCEûWITHû+OOKMINSû3USTAINABLEû
lNANCINGûFRAMEWORK ûWHICHûHASûAûSECONDû
opinion from Sustainalytics.
The deal follows similar Sustainable
BONDSûFROMû3OUTHû+OREANûCORPORATEûISSUERSû
,OTTEû0ROPERTYû$EVELOPMENTûANDû+OREAû%AST
7ESTû0OWERûINû*ULY
Credit Agricole, HSBC and MizuhoûWEREûJOINTû
bookrunners. HSBC is Sustainability
STRUCTURINGûADVISERû+"û3ECURITIESûWASûCO
manager.DPS PRINTS WITH KEXIM BACKINGDOOSAN POWER SYSTEMS priced US$300m of 30-
year non-call three senior capital securities
with a guarantee from Export-Import Bank
OFû+OREAû!A!!!!n ûATû4REASURIESûPLUSû
BP ûINSIDEûINITIALûGUIDANCEûOFûBPûAREA
/RDERSûWEREûOVERû53MûFROMûû
ACCOUNTS ûWITHû!SIANûINVESTORSûBOOKINGûû
of the Reg S bonds and European investors
û&UNDûMANAGERSûANDûASSETûMANAGERSûTOOKû
AûCOMBINEDû ûBANKSû ûINSURERSûûANDû
PRIVATEûBANKSû
The securities are expected to be rated
Aa2 by Moody’s.
$03ûCANûDEFERûCOUPONS ûSUBJECTûTOûAû
dividend stopper on its own shares and
those of its parent, Doosan Heavy Industries
& Construction. Coupons are cumulativeand compounded. The structure is the same
ASûTHATûUSEDûINû$03Sû53Mûûû
bonds issue callable in December.
Nomura’s sales and trading desk saw fair
value at around Treasuries plus 110bp–
BP ûBASEDûONûAûBPnBPûGUARANTEEû
PREMIUMûOVERû+EXIM ûPLUSûEXTRAûSPREADûFORû
the risk of coupon deferral.
)NûTHEûEND ûTHEûPREMIUMûWASûJUSTûBPû
OVERû+EXIMSûTHREE
YEARûNOTES ûWHICHûWEREû
seen at Treasuries plus 70bp, as investors
were drawn to the defensive nature of the
credit.
The notes roll in perpetuity 30 years at a
TIMEûIFûNOTûCALLED ûSINCEû3OUTHû+OREAûDOESû
not allow actual perpetuals, but if DPS does
NOTûREDEEMûTHEMûONûTHEûCALLûDATE û+EXIMû
will purchase the securities in any case.
There is a step-up of 130bp over the initial
Treasury spread if the notes are not called
after three years, but that is mainly a
requirement for the rating, given that they
are highly unlikely to be outstanding after
this period.
HSBC, Societe Generale and Standard
CharteredûWEREûJOINTûBOOKRUNNERSû+EXIMû
"ANKû5+ ûWASûCO
MANAGER
Doosan Power Systems provides
equipment, maintenance and repair services
to thermal and nuclear power producers, as
well as to the oil, gas and petrochemical
industries.MIRAE ASSET DAEWOO MEETS
INVESTORSMIRAE ASSET DAEWOO, rated Baa2 by Moody’s,
will meet investors from Monday in Asia and
Europe for a debut US dollar bond issue.
The Reg S senior unsecured notes will
come in a short to intermediate maturity,
SUBJECTûTOûMARKETûCONDITIONS
IFR reported in August that the South
+OREANûSECURITIESûlRMûHADûMANDATEDûBNP
Paribas, Citigroup, Daiwa Capital Markets
Europe, HSBC and Mirae Asset Securities (HK).
4HISûISûTHEûlRSTûTIMEûAû3OUTHû+OREANû
SECURITIESûlRMûISûSETûTOûISSUEû53ûDOLLARûBONDSû
in public debt markets, according to
2ElNITIVûDATA
Mirae Asset Daewoo is the largest
BROKERAGEûlRMûINû3OUTHû+OREA ûWITHû
businesses in trading, wholesale and
investment banking, and wealth
management.
It was established after Mirae Asset
3ECURITIESûBOUGHTûAûûSTAKEûINû$AEWOOû
3ECURITIESûFROMûSTATE
RUNû+OREAû
$EVELOPMENTû"ANKûINûû4HEûSALEûWASû
PARTûOFû+$"SûDIVESTMENTûDRIVE
The company will use the proceeds for
general corporate purposes and to fund its
global expansion. Its website says it has set
its eyes on becoming a top-tier Asian
investment bank by 2020.