Search results for

Korean company Halla Cement this week issued the largest international debt offering to emerge from Korea since the republic's $4bn transaction of April 1998. Using the capital markets as an exit for what was the second largest ever Korean bankruptcy, the deal may provide a template for future M&A financings from the country and the region. Lead manager Rothschild Inc is already far advanced on a second offering for Mando Machinery, the flagship company of the collapsed Halla group.

Sydney Airports Corporation (SAC) completed one of the largest ever corporate bond offerings in the domestic Australian market this week, signalling a new stage of development away from traditional dominance by bank credits. Commonwealth Bank of Australia (CBA) and Westpac were joint lead managers for an A$400m ($254m) five year deal due March 15, 2004. Priced at 99.873 with a 6.35% coupon, the A+ rated transaction came at 97bp over government bonds, equating to 52bp over swaps.

The Kingdom of Thailand has backed away from the launch of its long mooted global bond offering, pushing the prospective timetable for the deal back to the second half of the year. Ministry of Finance officials told Euroweek that an issue is not now likely before the end of June. "Funds received as a result of the Miyazawa plan have used up two thirds of our $2bn capital markets quota for the financial year," said one official.

Kepco's $500m secondary ADR sale got off to a shaky start this week when a finance ministry slip up left bookrunners ING Barings, Salomon Smith Barney and Hyundai Securities fielding questions about the myriad uncertainties surrounding the deal during the first week of the roadshow. The lead managers advised the government on Saturday to sell 42m shares, reducing its stake from 5.38% to 2.08%. Assuming parity of the ADRs to local stock - they are currently at a 15% premium - $500m would be raised, increasing to $600m should the 15% greenshoe be exercised.

Life Co, an independent Japanese consumer finance company, is to launch its first international auto loan securitisation through Warburg Dillon Read in the next two weeks. The transaction, known as Freya Funding Corp after the Norse goddess of life, will be worth between $200m and $220m, and will be wrapped by triple-A rated monoline insurer FSA. With a one year average life and five year legal final maturity, the deal is expected to be priced in the low 40s over one month Libor.

n Kookmin Bank this week launched a rare bond offering from the Korean banking sector. The $50m private placement FRN was led by Daiwa Securities (HK) Ltd at a spread of 25bp over six month Libor and a two year maturity. n Following the success of its debut euro denominated offering last week a second company affiliated to Hutchison Whampoa has launched a bond offering.

* KfW International Finance

EARLY indications that appetite for Rexam debt has been strong have prompted observers to speculate that the deal is benefiting from a quiet syndicated loan market. The Eu550m deal was launched into the market two weeks ago and many bankers had feared for its safety in retail. But the dearth of deals in the market since the beginning of the year has, say some bankers, increased the financing's profile.

The birth of the euro has provided a powerful new boost for the already buoyant European equity-linked debt market, which is enjoying unprecedented growth and development. With interest rates low and stockmarkets high, a growing range of companies — from the blue chip and, increasingly, from the high growth sectors — are queuing up to issue equity-related finance and the investor base is expanding all the time. Now, with a single currency, deals can be done in size and with a frequency that is fast establishing European equity-linked debt as an asset class in its own right. And with the twin themes of corporate restructuring and shareholder value likely to dominate Europe’s financial markets for some while yet, the emergence of an increasingly deep, liquid and diverse equity-linked debt market in Europe looks like being a major feature in the development of the pan-European capital market. Rosie Shepperd reports.

Finland Finnair had quietly signed a $250m facility arranged by BNP (also the agent), Commerzbank, ING, Landesbank Kiel, and Paribas. The borrower is the Finnish national airline and is using the facility to buy Airbus aircraft, to be delivered over the next two years.

The Republic of Slovenia tested investor sentiment toward central and eastern Europe last Friday with the launch of a tightly priced Eu400m 10 year issue. Lead managed by Credit Suisse First Boston and Morgan Stanley, the A3/A rated transaction featured a 4.875% coupon to give a margin of just 86bp over the 3.75% January 2009 Bund at the issue/ fixed re-offer price of 99.165.

* Commerzbank SA