Senior Credit Analyst, Lucror Analytics

Leonard Law, CFA

Senior Credit Analyst

High Yield Experts

Lucror Analytics

Lucror Analytics is a leading credit and ESG research specialist and a provider of technology solutions for differentiated fixed income strategies. Our roots are in bottom-up fundamental credit analysis with a specialization in high yield corporate credits from Europe, Asia and Latin America. We are one of few research specialists integrating ESG considerations with fundamental credit research through a dedicated ESG platform. Our ESG assessment covers five key criteria: Disclosure, E,S, & G Pillars, Controversies, ESG Impact on Credit and ESG Momentum.

Recognizing the importance and value-add of Factor Investing in fixed income, Lucror developed the Smart Quant Navigator (SQN), an intuitive platform that helps clients devise and implement factor-based strategies ranging from pure quant to active fundamental, with integrated ESG.

Our company has been at the forefront of developments in the fixed income markets, identifying opportunities and consistently delivering new products and value-adding solutions to clients. Lucror has close relationships with the largest and most reputable asset managers, family offices, hedge funds, investment and wealth managers globally.

Credit

Lucror Analytics Weekly Wraps provide an overview of all Morning Views comments and reports published by our analyst team in the past week, and also showcase a list of the most-read reports.In this Insight:<ol><li><a href='/entities/china-jinmao-holdings-group' target='_blank' rel='noopener'>China Jinmao Holdings</a></li><li><a href='/entities/lifestyle-international-holdings-ltd' target='_blank' rel='noopener'>Lifestyle International Holdings</a></li><li><a href='/entities/geely-automobile-holdings-ltd' target='_blank' rel='noopener'>Geely Auto</a></li><li><a href='/entities/first-pacific-co-ltd' target='_blank' rel='noopener'>First Pacific Co</a></li><li><a href='/entities/tata-motors-ltd' target='_blank' rel='noopener'>Tata Motors Ltd</a></li></ol>and more...

Lucror Analytics Weekly Wraps provide an overview of all Morning Views comments and reports published by our analyst team in the past week, and also showcase a list of the most-read reports.In this Insight:China Jinmao HoldingsLifestyle International HoldingsGeely AutoFirst Pacific CoTata Motors Ltdand more...

Trung Nguyen

Although there would be no principal loss from Jababeka's bond exchange offer, the new bonds would have a significantly longer maturity (2027 vs. 2023), with only a slightly higher coupon. The new notes would likely also have limited liquidity. The KIJAIJ 6.5 23 is trading at c. 50, yielding c. 125%, having dropped from 55 before the announcement of the exchange offer. We estimate the yield of the notes following participation in the exchange offer at 54%, given the current price of the KIJAIJ 6.5 23. If the exchange offer is not completed, Jababeka looks set to default on the KIJAIJ 6.5 23. The company had only USD 81 mn of cash in July 2023, while generating minimal FCF (USD 6 mn in LTM to June 2022). A USD 100 mn term loan from Bank Mandiri would also not be available to be draw down. We recommend that noteholders participate in the exchange offer and give consent to eliminate substantially all restrictive covenants.

  Although there would be no principal loss from Jababeka's bond exchange offer, the new bonds would have a significantly longer maturity (2027 vs. 2023), with only a slightly higher coupon. The new notes would likely also have limited liquidity. The KIJAIJ 6.5 23 is trading at c. 50, yielding c. 125%, having dropped from 55 before the announcement of the exchange offer. We estimate the yield of the notes following participation in the exchange offer at 54%, given the current price of the KIJAIJ 6.5 23.   If the exchange offer is not completed, Jababeka looks set to default on the KIJAIJ 6.5 23. The company had only USD 81 mn of cash in July 2023, while generating minimal FCF (USD 6 mn in LTM to June 2022). A USD 100 mn term loan from Bank Mandiri would also not be available to be draw down.   We recommend that noteholders participate in the exchange offer and give consent to eliminate substantially all restrictive covenants. 

Jababeka - Event Flash - Exchange Offer For USD 300 Mn 6.5% Notes Due 2023 - Lucror Analytics

Lucror Analytics Weekly Wraps provide an overview of all Morning Views comments and reports published by our analyst team in the past week, and also showcase a list of the most-read reports.In this Insight:<ol><li><a href='/entities/china-jinmao-holdings-group' target='_blank' rel='noopener'>China Jinmao Holdings</a></li><li><a href='/entities/guangzhou-r-f-properties-h' target='_blank' rel='noopener'>Guangzhou R&F Properties</a></li><li><a href='/entities/sunac-china-holdings-ltd' target='_blank' rel='noopener'>Sunac China Holdings</a></li><li><a href='/entities/china-evergrande-group' target='_blank' rel='noopener'>Evergrande</a></li><li><a href='/entities/central-china-real-estate-ltd' target='_blank' rel='noopener'>Central China Real Estate</a></li></ol>and more...

Lucror Analytics Weekly Wraps provide an overview of all Morning Views comments and reports published by our analyst team in the past week, and also showcase a list of the most-read reports.In this Insight:China Jinmao HoldingsGuangzhou R&F PropertiesSunac China HoldingsEvergrandeCentral China Real Estateand more...

Lucror Analytics Morning Views comprise our fundamental credit analysis, opinions and trade recommendations on high yield issuers in the region, based on key company-specific developments in the past 24 hours. Our Morning Views include a section with a brief market commentary, key market indicators and a macroeconomic and corporate event calendar.<ul><li><a href='#lucror-entity-2036'>Central China Securities</a></li><li><a href='#lucror-entity-18054'>China Fortune Land</a></li><li><a href='#lucror-entity-5225'>Country Garden Holdings Co</a></li><li><a href='#lucror-entity-7755'>Kawasan Industri Jababeka</a></li><li><a href='#lucror-entity-8149'>Longfor Properties</a></li><li><a href='#lucror-entity-20844'>Medco Energi</a></li></ul>

Lucror Analytics Morning Views comprise our fundamental credit analysis, opinions and trade recommendations on high yield issuers in the region, based on key company-specific developments in the past 24 hours. Our Morning Views include a section with a brief market commentary, key market indicators and a macroeconomic and corporate event calendar.Central China SecuritiesChina Fortune LandCountry Garden Holdings CoKawasan Industri JababekaLongfor PropertiesMedco Energi

Morning Views Asia: Central China Securities, China Fortune Land, Country Garden Holdings Co

Lucror Analytics Morning Views comprise our fundamental credit analysis, opinions and trade recommendations on high yield issuers in the region, based on key company-specific developments in the past 24 hours. Our Morning Views include a section with a brief market commentary, key market indicators and a macroeconomic and corporate event calendar.<ul><li><a href='#lucror-entity-6159'>China SCE</a></li><li><a href='#lucror-entity-5225'>Country Garden Holdings Co</a></li><li><a href='#lucror-entity-7755'>Kawasan Industri Jababeka</a></li></ul>

Lucror Analytics Morning Views comprise our fundamental credit analysis, opinions and trade recommendations on high yield issuers in the region, based on key company-specific developments in the past 24 hours. Our Morning Views include a section with a brief market commentary, key market indicators and a macroeconomic and corporate event calendar.China SCECountry Garden Holdings CoKawasan Industri Jababeka

Morning Views Asia: China SCE, Country Garden Holdings Co, Kawasan Industri Jababeka

Indonesia

PT Kawasan Industri Jababeka Tbk develops and sells industrial estates and its related facilities and services as well as develops and installs water treatment plants, waste water treatment, utilities, and other facilities.  The Company also provides recreational facilities, and imports and exports goods for businesses relating to development and management of the industrial estate.

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Kawasan Industri Jababeka (KIJA IJ)

Weekly Wrap - 18 Nov 2022

Lucror Analytics Weekly Wraps provide an overview of all Morning Views comments and reports published by our analyst team in the past week, and...

Lucror Analytics

Jababeka - Event Flash - Exchange Offer For USD 300 Mn 6.5% Notes Due 2023 - Lucror Analytics

Although there would be no principal loss from Jababeka's bond exchange offer, the new bonds would have a significantly longer maturity (2027 vs....

Lucror Analytics

Weekly Wrap - 11 Nov 2022

Lucror Analytics Weekly Wraps provide an overview of all Morning Views comments and reports published by our analyst team in the past week, and...

Lucror Analytics

Morning Views Asia: Central China Securities, China Fortune Land, Country Garden Holdings Co

Lucror Analytics Morning Views comprise our fundamental credit analysis, opinions and trade recommendations on high yield issuers in the region,...

Lucror Analytics

Morning Views Asia: China SCE, Country Garden Holdings Co, Kawasan Industri Jababeka

Lucror Analytics Morning Views comprise our fundamental credit analysis, opinions and trade recommendations on high yield issuers in the region,...

Lucror Analytics

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