Search results for

The much awaited hybrid placement on behalf of government owned Korea Deposit Insurance Corp (KDIC) will kick off next week as the three lead managers set out on premarketing. The planned $500m bond/exchangeable will be a stern test of the market's appetite for a structure that many consider to be an ambitious mechanism for monetising state assets.

Computer and electronics company NEC plans unveiled to be the first Japanese non-financial issuer to bring a hybrid debt and equity deal this week by launching ¥100bn in a trust-preferred securities deal through NEC Business Trust, a wholly owned subsidiary. The Japanese corporate also announced the launch of ¥100bn of euro-based convertible bonds. If the trust-preferred securities deal succeeds, it will be the first time a Japanese non-financial institution has launched such a hybrid instrument. NEC used the structure because it does not dilute earnings for common equity holders and will not result in any changes to its credit rating.

In a bid to access international markets and help out highly leveraged state company National Power Corp (Napocor), the Republic of the Philippines has turned towards the Euromarket once more. The Philippines finance ministry (DoF) plans to launch a Eu250m bond issue with a tenor of three to five years - its first foray into the market since its debut bond in 1999. The DoF said that once it has completed the issue it would on-lend the proceeds to Napocor in order to help the state owned company meet its financing requirements in the coming months.

The float of the Petroleum Authority of Thailand (PTT), the largest IPO in Thailand's history, went on sale to retail buyers yesterday (Thursday) morning. Enthusiasm for the country's latest privatisation exercise is strong. The first lot of 220m retail shares allotted to Thai individual investors sold out within one hour. They were offered through public subscription on a first-come, first-served basis. PTT is offering a total of 800m shares, priced from Bt31 to Bt35 each. Of these, 750m are new PTT shares and 50m are owned by the government. Some 480m shares will be allotted to local investors, and the rest to foreign institutions.

Singapore's efforts to grow and diversify its capital markets suffered a blow this week as CapitaLand was forced to cancel the float of its newly created SingMall Property Trust as demand for the issue failed to materialise. The float was to have been the first Singapore real estate investment trust (REIT) and was thought to have been well timed, given the search by investors for relatively low risk stocks with high yields.

Japanese securities firm Nomura is to sponsor its first Hong Kong IPO since 1997. Privately owned Zhejiang Glass is due to begin trading in 'H' share format on December 10. The deal was launched on Tuesday. Zhejiang Glass is the fifth largest flat glass producer in China, a country that controls 28% of the global industry. As well as being the first privately held Chinese company to float in Hong Kong, it is the only privately-owned glass company in China. Zhejiang has achieved dramatic growth since 1998, growing turnover and net profit at a compound rate of 54% and 114%, respectively.

Australia Westfield Property Trust has raised A$210m through UBS Warburg and Deutsche Bank at $3.28 a unit. The money partly funds a A$555m deal which saw the trust assume ownership of the Bondi Junction Westfield Shoppingtown and Centrepoint Tower with AMP Henderson Global. As part of the deal, the property developer will also sell a half share in Westfield Liverpool to AMP.

Australian Mortgage Securities (AMS), ABN Amro's in-house mortgage originator, yesterday (Thursday) priced its latest international ABS deal, offering $582m to European investors. Lead managed by ABN Amro (books) and Deutsche Bank, the deal offers European dollar investors a rare chance to diversify their portfolios by buying Australian credit.

Singapore Airlines (SIA) launched its debut domestic bond into the Singapore debt market on Friday to a mixed reception. The S$800m 10 year deal, which marks the partially state owned corporate's first bond issue of any kind since 1994, was priced at a level deemed fairly aggressive by some observers.

In a move that surprised observers, Standard & Poor's (S&P) increased its long term foreign currency rating of the Republic of Korea to BBB+ (with stable outlook) from BBB this week, a move that has resulted in a rally in the country's strongly performing spread levels. S&P said that the rating upgrade "was driven predominantly by continued progress in structural reform". Following the sovereign upgrade, S&P also improved the sovereign ceiling-constrained ratings of a slew of Korean corporates, including Korea Development Bank (KDB), Korea Telecom, Korea Tobacco & Ginseng Corp, Pohang Iron & Steel Co and SK Telecom, all of which were improved to BBB+.

Citibank this week priced its seventh and eighth securitisations backed by Australian residential mortgages through its Compass Master Trust programme. Lead managed by Salomon Smith Barney, the issues raised a total of A$364m divided into two senior tranches and two subordinated strips.

With a roadshow completed, BHP Billiton is poised to head into the Australian dollar market next week with a benchmark transaction that bankers hope will open the primary pipeline for other corporate issuers. National Australia Bank, UBS Warburg Australia and Westpac Institutional Bank are joint lead managers for the A$500m-plus transaction, slated to have a maturity of six or seven years.