South Korea

South Korea has been one of the most active Asian equity capital markets in 2016 with high expectations that IPO volumes this year will be its largest on record. The figures are reassuring, but the KRX appears hell bent on wooing southeast Asian issuers to its stock exchange. Focusing on its strengths instead would be far more fruitful.

Natixis and Korea's KB Insurance (KBI) have signed a pact to co-invest in infrastructure and aviation debt that will be originated by the French lender.

Kia Motors Corp had a stellar response to its first dollar outing in almost five years, selling a dual-tranche bond on the back of what bankers say was one of the biggest order books achieved by a South Korean issuer. The combination of the strength of Kia's credit and its rarity value proved to be a winning recipe.

Appetite for Korea Resources Corp’s offshore outing on Monday was strong despite Moody’s recent decision to review its rating for a downgrade. Not only was the issuer able to increase the bond’s size to $500m but it also found a high quality order book.

Citi has created a new position of head of corporate banking for Asia Pacific, naming Gerry Keefe in the role.

South Korea’s Kia Motors Corp has started taking orders for a 144A/Reg S deal, which is split between a five year and a 10 year tranche.

Mitsubishi UFJ Securities (HK) has hired former Barclays banker Alan Choi as executive director for the capital markets group, effective from April 5.

Korea Resources Corp (KoRes) managed to brush away concerns about Moody’s decision to review its rating for a downgrade, raising more than expected from its latest bond outing. The deal’s high quality order book stood out when compared with some other recent transactions from peers.

Korea Resources Corp (KoRes) is poised for its first appearance of the year in the international bond market, opening books on Monday for a Reg S dollar offering.

The Korea Exchange (KRX) has been busy this year, setting up specialist groups and a new marketing department to promote its bourse to international issuers. KRX’s senior manager for the global marketing department, Jae Hwa Oh, told Jonathan Breen that the goal, among others, is to make South Korea a financial hub in Asia.

Korea National Oil Corp (KNOC) navigated a crowded primary market on Tuesday to seal a $1bn dual-tranche bond. Thanks to the credit’s safe-haven status, onshore investors piled in, allowing the firm to price the deal flat to its existing curves.

It goes without saying that things have not gone according to plan for Asia’s equity capital markets this past quarter. The numbers are sobering and the reality is that ECM has seen some fundamental shifts as deal origination and execution become more non-traditional. But that does not have to be a bad thing.