South Korea

Investors chased South Korean semiconductor manufacturer SK Hynix’s $500m bonds both in the primary and secondary markets, even though the borrower pulled off one of the largest price reductions on a deal from the country.

Asia’s IPO market burst into life this month, with issuers in Hong Kong, South Korea, Singapore and the Philippines testing investor appetite for their listings. While the resurgence is welcome after a bleak year for issuance so far, it is likely to be short lived, with a lot also resting on early movers’ performances.

South Korean energy company SK E&S Co has bagged HK$5.1bn ($650.7m) after selling a block of shares in China Gas Holdings, a source close to the deal told GlobalCapital Asia.

South Korea’s Hyundai Capital Services pulled a dollar bond sale on Tuesday due to poor market conditions. Bankers away from the transaction blamed the failure on excess supply in the US.

Korean Air Lines Co returned to the policy bank-guarantee structure for its latest offshore bond this week, raising $300m at a favourable price.

South Korean conglomerate Lotte has filed documents for the IPO of a real estate investment trust (REIT), looking to raise up to W430bn ($353m).

Korea Development Bank moved to place the largest Korean Kangaroo earlier this week, a note that was also priced more tightly than any other Korean-issued Aussie dollar deal.

JP Morgan has hired veteran banker Yuka Uehara to its Japan equity capital markets team, and brought on Jinsoo Ha to lead ECM in South Korea, according to an internal memo seen by GlobalCapital Asia.

Korea’s Financial Conduct Authority has supported the covered bond market this year with a series of new measures that aim to stimulate demand and supply. Its actions should promote local currency issuance, building on this year’s strong start.

LG Display tapped the convertible bond market for W813.6bn ($687.8m) this week, its first equity-linked outing since the global financial crisis. Although the deal came at a troubling time for the issuer, its popularity has set the stage for a strong second half for the market. Jonathan Breen reports.

South Korean digital display manufacturer LG Display has bagged W813.6bn ($687.8m) from a convertible bond, according to a term sheet seen by GlobalCapital Asia.

South Korea’s sustainable financing efforts were given a boost this week, after Lotte Property and Development Co sold a $300m bond.