이 기사는 2020년 02월 28일 08:00 thebell 에 표출된 기사입니다.

Korea Resources Corporation (KORES) has delayed its planned issuance of kangaroo bonds due to an unfavorable market environment after an outbreak of coronavirus.

The state-run company originally planned to hold its pricing process to issue kangaroo bonds - debt denominated in Australian dollars and issued by offshore firms in the Australian market - on February 24 or 25, but suspended the offering as global virus scare has dampened investor sentiment. The company is expected to resume its process next month depending on market conditions.

It appears that the company has decided to take a wait and see stance as investors demand higher interest rate due to rising volatility. Unfavorable market conditions are also one of the reasons, with some foreign investors being separated as the novel coronavirus continues to spread.

KORES has picked its lead manager last month to manage the issue for refinancing $350 million debts maturing in April. The company held its roadshow in Australian markets earlier this month to attract investors.

Since 2010, the company has raised funds by selling dollar-denominated bonds only. KORES’ latest attempt to sell Kangaroo bonds has appeared quite unusual considering prolonged low interest environment for dollar-denominated bonds. Some industry insiders say the company has made such decision to avoid the 135-day rule by the U.S. Securities and Exchange Commission (SEC), which mandates that the offering must take place within 135 days from the balance sheet date in an offering circular and registration statement.

KORES has a rating of A1 by global credit ratings agency Moody’s and A by Standard and Poor’s (S&P), hovering below sovereign credit rating of AA for Korea.

The company has been facing an acute liquidity crisis since 2016. The company has 1.46 trillion won worth impaired capital as of June 2018.

KORES has already used up its ceiling in bond issues in Korean currency and is relying on short-term debts such as commercial papers to stay afloat.

(By reporter Pi Hye-rim)