Mitsubishi Corp., Tokyo Electric, Kia Motors: Asia Bond Alert
By Denise Kee
Feb. 4 (Bloomberg) — Mitsubishi Corp., Japans largest
trading company, and Tokyo Electric Power Co., Asias largest
utility, are among borrowers seeking to sell at least $6.4
billion of bonds in Asia, according to data compiled by
Bloomberg.
Governments and companies in the region sold $57.4 billion
of debt denominated in dollars, euros and yen last year,
compared with $66.3 billion in 2006, Bloomberg data show. They
have sold $3 billion of bonds so far this year.
Sales of so-called samurai bonds, yen-denominated debt sold
by foreign entities in Japan, rose to 2.2 trillion yen ($20.7
billion) last year from 741 billion yen in 2006, according to
Bloomberg data.
The following is a description of pending sales in Asia
expected in the coming days and weeks.
KIA MOTORS CORP., South Koreas second-biggest automaker,
plans to revive a $500 million bond sale that was canceled last
year. Citigroup Inc. and Korea Development Bank will underwrite
the sale, Kia spokeswoman Pamela Munoz said in a phone interview
in Seoul. Other details including the issue date and interest
rate are yet to be decided, she added.
Kias debt is rated BBB- by Standard %26amp; Poors.
(Added Jan. 17. News: 000270 KS)
Yen-Denominated
MITSUIBISHI CORP. plans to sell bonds maturing in 10 years
and hired Mitsubishi UFJ Securities Co. and Nikko Citigroup Ltd.
to handle the sale, according to a statement.
The timing or the size of the sale has not been determined,
according to the statement from Mitsubishi UFJ Securities.
Mitsubishi is rated A2, or the sixth-highest level, by
Moodys Investors Service. Standard %26amp; Poors rates the company A,
also the sixth highest.
(Added Feb 4. News: 8058 JP)
TOKYO ELECTRIC POWER CO., Asias largest utility, plans to
sell 150 billion yen of bonds as early as February to take
advantage of lower interest rates, a company official said.
The sale of the securities, which will mature in three and
10 years, will boost the Tokyo-based companys total bond
issuance to 750 billion yen for the current fiscal year, said
Masaru Takei, a managing director of the company.
The company is rated Aa2, or the third-highest level, by
Moodys. It also carries S%26amp;Ps third-highest rating of AA.
(Added Jan. 31. News: 9501 JP)
West Japan Railway Co., one of Japans four bullet train
operators, plans to sell 20-year bonds and hired Daiwa
Securities SMBC Co. and Mitsubishi UFJ Securities Co. to handle
the sale, according to a statement from Mitsubishi UFJ.
JR West, as the company is better known, is rated A+, or
the fifth-highest level, by S%26amp;P.
(Added Jan. 28. News: 9021 JP)
THAILANDs finance ministry will proceed with a plan to
sell 55 billion yen of bonds denominated in the Japanese
currency, Pongpanu Svetarundra, director general of the Public
Debt Management Office, said at a press conference in Bangkok
last week. The government aims to sell the bonds in March or
April, he said.
The sale will be the governments third offering of debt in
the Japanese currency since 2001.
Thailands foreign-currency government debt is rated BBB+
by S%26amp;P.
(Added Jan. 28. News: 1179Z TB)
High Yield
PT BANK MANDIRI, Indonesias largest financial services
company by assets, plans to raise $800 million this year by
selling bonds and borrowing, Bisnis Indonesia reported.
The plan includes a $300 million of proposed dollar-
denominated bonds, the newspaper said, citing President Director
Agus Martowardojo.
Bank Mandiri plans to sell $300 million of five-year bonds
to repay debt maturing this year and to increase its dollar
holdings, Pahala Mansury, chief financial office at the bank
said in August.
The bank is rated B1, four levels below investment grade by
Moodys and at one level higher at BB- by S%26amp;P.
(Added Jan. 11. News: BMRI IJ)
PT BANK PAN INDONESIA hired Credit Suisse Group and
JPMorgan Chase %26amp; Co. to arrange its first overseas bond sale,
according to two people with knowledge of the plan.
Panin, as the Jakarta-based bank is known, will monitor the
debt market this week before coming up with a detailed plan to
sell $200 million of bonds in February, said the people, who
asked not to be identified before an announcement.
(Added Jan. 9. News: PNBN IJ)
PT BUMI RESOURCES, Indonesias biggest coal miner, may sell
$1 billion of bonds to finance investments as it plans to double
output in four years, Bisnis Indonesia reported, citing a person
familiar with the plan.
The company, which hired Credit Suisse as the lead adviser
for the sale, may sell the securities by the end of the second
quarter, the newspaper cited the person as saying.
(Added Nov. 30. News: BUMI IJ)
PAKISTAN ELECTRIC POWER COMPANY (PVT.) LTD. plans to sell
as much as $1 billion of bonds to develop water-power projects
needed to help the South Asian nation overcome a shortage of
generating capacity.
The bonds may be sold in maturities of five and 10 years
and are backed by the Pakistan government, Chief Financial
Officer Abdul Qadeer said.
(Added Nov. 26. News: Pakistan)
PT EXCELCOMINDO PRATAMA, Indonesias third-biggest mobile-
phone operator, plans to raise $950 million by selling bonds or
borrowing to repay existing debt and expand its wireless
services.
It said it will use $350 million of the funds to expand and
the remaining to reduce debt.
(Added Nov. 26. News: EXCL IJ)
PT JAPFA COMFEED INDONESIA, Indonesias biggest animal-feed
producer by sales, plans to sell as much as $200 million of
bonds to refinance debt, Bisnis Indonesia newspaper reported,
without saying where it got the information.
The company is seeking funds for working capital and may
raise the money from selling bonds or borrowing from banks, the
report cited Japfas Corporate Secretary Christine Wibisono as
saying.
(Added Oct. 2. News: JPFA IJ)
To contact the reporter for this story:
Denise Kee in Singapore at
