Asian companies are ready to open face-to-face roadshows as South Korea issuers get good responses to investor meetings. The first international face-to-face investor meetings in Asia, despite the pandemic, is Korea Housing Finance Corp (KHFC). Early in May, this state-owned firm visited Singapore to have the opening ceremony for its new branch there. They also talk to covered bond investors. Through Singapore hub KHFC issued a €600m covered bond.
The firm had a chance to discuss with the bondholders about the post-deal catch up. Citigroup, Credit Agricole, ING, Societe Generale, and Standard Chartered are the arrangers of the non-deal meetings. These banks are also the bookrunners for the deal. The head of the covered bond team at KHFC, Juhwa Jung argued that the issuer expects to attract more anchor investors. Thus, face-to-face meetings are the most effective strategy for the smaller issuers to connect the buy side.
Jung remarked that the meetings were successful. The event helped the firm to understand the investors’ opinions about the company. This is because, during the virtual roadshow, investors hesitate to ask questions. To be frank, some virtual NDRs are recorded, so they cannot express themselves freely. Jung added that during the event, some investors expect KHFC to obtain more international credit rating.
South Korean issuers are the first in Asia to conduct this overseas meeting. Hong Kong-based DCM bankers also noted that some SSA issuers conducted meetings in Europe too. The event did not hold the ordinary meeting. They had something else to do like sign on a loan or a project. They would swing by and meet investors. During the OECD meeting in Paris, Yoon Tae-sik, deputy finance minister, took the opportunity to meet French asset managers Amundi and Ostrum Asset Management. Besides the OECD meeting, they have other opportunistic meetings.
