Kia Motors, Hyundai, Kookmin Bank, Woori Bank: Asia Bond Alert
By Denise Kee
Jan. 15 (Bloomberg) — Kia Motors Corp., South Koreas
second-largest automaker, Kookmin Bank, South Koreas largest,
Woori Bank, a unit of South Koreas third-largest financial
services company and Nippon Telegraph %26amp; Telephone Corp., Japans
biggest phone company, are among borrowers seeking to sell at
least $5.45 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
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 ($20.2
billion) from 741 billion yen in the whole of 2006, according to
Bloomberg data.
The following is a description of pending sales in Asia
expected in the coming days and weeks.
Investment Grade
KIA MOTORS CORP. plans to revive the $500 million bond sale
plan it scrapped last year, Internet news service MoneyToday
reported, citing an unidentified company official. Citigroup
Inc. and Korea Development Bank were hired to manage the sale of
five-year debt, the report said. The timing of the issuance
hasnt been decided and company is waiting until the financial
market stabilizes, the Korean-language report today said.
(Added Jan. 14. News: 000270 KS)
KOOKMIN BANK, South Koreas biggest, hired Barclays
Capital, Citigroup Inc. and Merrill Lynch %26amp; Co. to sell bonds
denominated in dollars, said two people with direct knowledge of
the sale.
The Seoul-based bank plans to sell five-year securities to
raise at least $300 million to refinance debt, said the people,
who declined to be identified before an announcement. Kookmins
debt is rated Aa3, the fourth-highest level, by Moodys
Investors Service. Standard %26amp; Poors rates the bonds the sixth-
highest investment grade rating of A.
(Added Oct. 18. News: 060000 KS)
WOORI BANK, a unit of South Koreas third-largest financial
services company, hired Credit Suisse Group and Merrill Lynch to
sell dollar-denominated bonds, three people with direct
knowledge of the matter said.
Woori Bank, which also picked its securities unit to
arrange the sale, plans to raise about $500 million selling
five-year fixed-rate senior bonds to fund its operations, said
the people. Wooris debt is rated A-, the fourth-lowest
investment grade, by S%26amp;P. The senior debt is ranked two levels
higher at A1 by Moodys.
(Added Nov. 9. News: WOORIB)
Yen-Denominated
NIPPON STEEL CORP., the worlds second-largest steelmaker,
is planning to sell bonds maturing in six and 10 years,
according to an e-mail sent from Daiwa Securities SMBC Co.,
which will handle the 10-year bond sale. Mizuho Securities Co.
will also handle the 10-year bonds, while Mitsubishi UFJ
Securities Co. and Nikko Citigroup Ltd. will handle the six-year
bonds.
Nippon Steel is rated A1, or the fifth-highest level, by
Moodys. S%26amp;P rates the company A-, or the seventh highest.
(Added Jan. 11. News: 5401 JP)
HYUNDAI CAPITAL SERVICES INC., South Koreas largest auto-
finance company, plans to sell 30 billion yen of bonds this
month, a government filing in Japan shows.
Hyundai Capital, which lends to customers of Hyundai Motor
Co., South Koreas biggest automaker, plans to sell 25 billion
yen of two-year bonds with a fixed rate and 5 billion yen of
two-year bonds with a floating rate, according to the filing,
dated Jan. 8. The bonds will be priced as early as Jan. 17.
Hyundai Capital hired Daiwa SMBC, JPMorgan Chase %26amp; Co., UBS
AG to handle the sale of the securities, known as samurai bonds,
or debt issued in Japan by foreign issuers, the filing shows.
Hyundai Capitals debt is rated Baa2, the ninth-highest
grade, by Moodys, and an equivalent BBB by S%26amp;P.
(Added Jan. 10. News: HCSZ KS)
RENAULT SA, Frances second-largest automaker, plans to
revive a sale of yen-denominated bonds this month, a government
filing in Japan shows.
The company, based in Boulogne-Billancourt, is selling
fixed-rate bonds maturing in three and five years and three-year
floating-rate notes, todays filing shows.
Renault scrapped plans to sell the so-called samurai bonds,
debt sold by overseas borrowers mainly to Japanese investors,
last month because of increased borrowing costs in Japan.
Renault is rated Baa1, the eighth-highest investment grade,
by Moodys and the equivalent of BBB+ by S%26amp;P.
(Added Jan. 10. News: RNO FP)
NIPPON TELEGRAPH %26amp; TELEPHONE CORP., Japans largest phone
company, plans to sell bonds maturing in 10 years, according to
Mitsubishi UFJ Securities Co., one of the sales arrangers.
NTT also hired Daiwa Securities SMBC Co. and Merrill Lynch
to handle the sale, Mitsubishi UFJ said in a statement.
The company is rated Aa1, or the second highest, by Moodys
and AA, or the third highest, by S%26amp;P.
(Added Jan. 9. News: 9432 JP)
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 today.
The plan includes the $300 million the bank plans to raise
selling 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)
THE PHILIPPINES is considering offers from banks to manage
an overseas bond sale of $500 million and to issue peso-
denominated debt to families of nationals working abroad, Acting
Treasurer Roberto Tan said.
The government, which is on target to balance the budget
this year, may also lower the size of development loans from the
Asian Development Bank and World Bank to limit the supply of
foreign exchange, Tan said. The pesos 18.8 percent gain last
year made the countrys exports more expensive and eroded the
value of overseas workers remittances. Reducing foreign loans
would mean more domestic borrowings, Tan said.
Moodys rated the country B1 and S%26amp;P rated the country BB-.
(Added Jan. 7. News: PHIL)
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 daily 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, said Chief Financial
Officer Abdul Qadeer.
(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 balance 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
