SINGAPORE: PTT Exploration and Production, Thailand's top energy firm, will sell 10-year dollar bonds via a benchmark-sized offering as early as Monday. Barclays Capital is the sole bookrunner to the 144A/RegS issue which will raise funds for general corporate purposes. It has a rating of Baa1 from Moody's and BBB-plus from S&P. The outlook is stable from both agencies.
South Korean lender Shinhan Bank is planning a benchmark-sized, dollar-denominated bond issue which could price as early s today. The RegS/144A offering is of 5.5-year bonds which will mature in October 2016. BofA-Merrill Lynch, BNP aribas,HSBC,ING, JPMorgan,Mizuho, Royal Bank of Scotland and Shinhan are the bookrunners.
Meanwhile South Korean retail operator Lotte Shopping has mandated BNP Paribas and Citigroup for a potential US dollar Reg S offering. Investor meetings will commence on March 30 in Singapore and conclude in Hong Kong on March 31.
The borrowing is Lotte Shopping's debut in the international bond markets.
Indian Railway Finance Corp has mandated Bank of America Merrill Lynch for a US dollar RegS senior five-year bond. The sole mandate is a feather in the US bank’s cap. Winning a sole mandate on a bond is rare these days and that too from an Indian state-owned entity is even rarer.
IRFC is wholly owned by the government of India and has obtained a letter of undertaking from the Ministry of Railways in relation to the proposed bond offering. IRFC is rated Baa3/BBB-/BBB- (Moody’s/S&P/Fitch).
The borrower completed a roadshow in London on March 21 after having met with investors in Hong Kong (March 14) and Singapore (March 15).
Hong Kong-listed Kerry Properties will start investor meetings on March 28 in Hong Kong via Bank of China International, Deutsche Bank and HSBC. The meetings will continue on to Singapore on March 29 and conclude in London on March 30.
If a bond materialises, it will mark the borrower’s return to the offshore debt markets after five years. In August 2006, Kerry Properties made its debut with a USD420m 10-year RegS bond arranged by Goldman Sachs. That bond, which priced at 105bp over mid-swaps or 157.2bp over US Treasuries at the time, hardly trades in the secondary markets.
The Export-Import Bank of Korea is expected to conclude investor meetings in Edinburgh. The borrower met with investors in London on March 23 and 24. HSBC, RBS and UBS are the banks assisting the borrower with the meetings, which could lead to a pound sterling-denominated bond.
If so it will be Asia’s second paper denominated in the currency. In February, SPI (Australia) Assets, the Australian subsidiary of Singapore Power, raised GBP250m (USD409m) from a 10-year bond at a coupon of 5.125%.
Longfor Properties has mandated Citigroup, HSBC, Morgan Stanley and Standard Chartered for a US dollar Reg S/144a bond, which marks the PRC real estate developer’s debut in the offshore debt markets. Morgan Stanley and StanChart are joint global co-ordinators on the offering, which is expected to be rated Ba3/BB (Moody’s/S&P). The borrower is rated Ba2/BB+.
Two teams representing the borrower will go on the road from March 28 in Hong Kong before proceeding to New York and Singapore on March 29, and Boston and London on March 30.
KWG Property has received a B-plus rating from Standard & Poor's for a proposed issue of dollar-denominated bonds. The company will use the proceeds to finance existing and new property projects and the issue rating is one notch lower than the issuer rating due to structural subordination risk.
Australian REIT Goodman Funding raised USD500m from a 10-year Reg S/144a bond increased from an initial size of USD250m. Bank of America Merrill Lynch, Barclays Capital and JP Morgan were the leads on the offering, which priced at 98.997 and a coupon of 6.375% to yield 6.512%, or 312.5bp over US Treasuries, following demand for up to USD1.1bn.
The deal came with a new issue concession of 42.5bp to the company’s due November 2020 bonds, which were trading at around 260bp’270bp over US Treasuries. The outstanding deal is a USD325m 10-year bond paying 6.375% coupon and was issued in November 2010 at a spread of 387.5bp over Treasuries.
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