South Korea

South Korea’s Kookmin Bank has selected four banks to run a potential return to the covered bond market, but a source at the issuer said that due to unfavourable market conditions, there’s a possibility that the deal will not materialise.

STIC Investment sold down a W121bn ($99.5m) block in South Korean defence firm LIG Nex1 on Thursday, with the trade proving irresistible to investors amid ongoing geopolitical tensions in the country.

In this round-up, China's RMB trade settlement touches a new high, Hong Kong RMB clearing grew by 30% in 2015, South Korea's RMB deposits shrank by 75% over the year, Singapore plans closer cross-border RMB co-operation with China, and several Belt and Road initiatives were announced. Plus, a recap of GlobalRMB's top stories this week.

Jabez Private Equity Fund I offloaded the remainder of its holdings in South Korea’s Hyundai Securities Co on January 7, fetching W115bn ($96m) from the fixed price offering.

Doosan Group sold the third Asian block of the year this week and, in an unusual approach, opted for a private placement. If markets remain volatile, bankers predict many more of the region’s blocks may follow suit. Jonathan Breen reports.

Korea Midland Power Co (Komipo) bagged $300m from new 5.5 year notes that were four times subscribed on January 13. The Aa2/AA-/AA- rated borrower offered investors something of a safe haven play amid the recent volatility, with strong demand allowing the issuer to print the new bond with little premium.

Asia’s primary dollar bond market has seesawed since the start of the year, with paralysis one day and a flood of deals the next. This has caused market participants to scramble to come up with different strategies to navigate the market, writes Narae Kim.

STIC Investment launched a W121bn ($99.5m) sale of shares in Korean defence company LIG Nex1 on Thursday evening, confident they could cover the block with domestic investors.

Hotel Lotte could raise as much as $5bn from its IPO, expected as early as March, and land the title of the largest ever listing in South Korea in the process, according to market sources.

South Korea’s Woori Bank sealed a 144A return to the international bond market on January 12. The issuer’s aggressive pricing strategy kept US investors at bay, but it was unavoidable as the borrower wanted cheap funding, said bankers on the deal.

The Asia ex-Japan debt capital market was crowded with dollar issuers on January 13, with two investment grade bonds and two high yield notes opening in the morning.

Doosan Group jumped at an opportunity to exit from Korea Aerospace Industries this week, agreeing to a fixed price for its W305bn ($251.4m) block and offering an attractive discount of nearly 8%.