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.

High Yield Experts

Senior Credit Analyst, Lucror Analytics

Leonard Law, CFA

Senior Credit Analyst

Debt Capital Markets

Sawit Sumbermas Sarana / Debt Capital Markets

Sawit Sumbermas Sarana (SSMS) is conducting roadshows for a USD 300 mn Reg S only bond issuance. The proceeds are to be allocated as follows: [1] USD 280-285 mn for the repayment of existing bank facilities; [2] USD 10 mn for investment into an Indonesian forest conservation fund managed by a NGO, The Forest Trust; and [3] USD 5-10 mn for fees and general corporate purposes.  We view SSMS as “High Risk” on the LARA scale. This reflects the risks associated with its: [1] small scale, with geographically concentrated operations in a highly competitive and commoditised industry; [2] history of Environmental, Social and Governance (ESG) criteria infringements; and [3] opaque corporate structure, with significant related-party transactions. These risks are partly offset by SSMS’ moderate financial profile, solid operating margins due to high oil extraction rates, and a young plantation maturity profile. Our fundamental Credit Bias on SSMS is “Negative”, given the execution risks associated with the company’s transformative expansion plan. We view SSMS’s corporate governance as “Inadequate” on the LAGA scale. This is on account of it being effectively controlled by founder Abdul Rasyid, its loans to the parent entity, its poor environmental record, and its opaque corporate structure. We do not believe that minority shareholders or creditors derive any benefit from the loans to the holding company. We do not recommend that investors participate unless they have a favourable view on the outlook for crude palm oil prices and are familiar with Abdul Rasyid and his family. Investors should wait for 12 months to evidence the company's ability to execute upon its business plan.

Sawit Sumbermas Sarana (SSMS) is conducting roadshows for a USD 300 mn Reg S only bond issuance. The proceeds are to be allocated as follows: [1] USD 280-285 mn for the repayment of existing bank facilities; [2] USD 10 mn for investment into an Indonesian forest conservation fund managed by a NGO, The Forest Trust; and [3] USD 5-10 mn for fees and general corporate purposes.   We view SSMS as “High Risk” on the LARA scale. This reflects the risks associated with its: [1] small scale, with geographically concentrated operations in a highly competitive and commoditised industry; [2] history of Environmental, Social and Governance (ESG) criteria infringements; and [3] opaque corporate structure, with significant related-party transactions. These risks are partly offset by SSMS’ moderate financial profile, solid operating margins due to high oil extraction rates, and a young plantation maturity profile.  Our fundamental Credit Bias on SSMS is “Negative”, given the execution risks associated with the company’s transformative expansion plan.  We view SSMS’s corporate governance as “Inadequate” on the LAGA scale. This is on account of it being effectively controlled by founder Abdul Rasyid, its loans to the parent entity, its poor environmental record, and its opaque corporate structure. We do not believe that minority shareholders or creditors derive any benefit from the loans to the holding company.  We do not recommend that investors participate unless they have a favourable view on the outlook for crude palm oil prices and are familiar with Abdul Rasyid and his family. Investors should wait for 12 months to evidence the company's ability to execute upon its business plan. 

Sawit Sumbermas - New Issue Assessment - Lucror Analytics