Although the talk is nothing new, the Indonesian government is apparently looking again at securitizing petroleum exports. The chief government economic minister, Rizal Ramli, is reported to have said that the government plans to raise around $500 million from natural gas sales to Singapore, and is inviting investment banks to look into a possible future flow deal. Indonesia's national debt currently stands at around $130 billion, and securitization has been seen has a solution to alleviating some of the debt.
In the Philippines, another country where speculation has not been matched by activity, the latest rumor links the government with a deal backed by its 27% shareholding in the brewing company, San Miguel. The Philippines also faces a chronic debt situation, but the government is reluctant to sell its stake in San Miguel - for which it could earn anything up to a billion - and is said to be in discussing with bankers to see if securitizing its holding might be a viable alternative.
In Korea, Hyundai Electronic Industries Co. is said to be lining up possible deals that could raise the company up to $1 billion next year. Among the most likely assets to be securitized are uncollected sales revenues from overseas customers as well as property holdings.
The Korean Asset Management Corp. (KAMCO) is lining up a W218 billion ($191 million) deal for early to mid December. A portfolio of non-performing corporate loans will back the transaction, which will arranged by joint lead managers, Daishin Securities and Meritz Securities. KAMCO was unavailable for comment as ASRI went to press.
Japanese banks Sumitomo and Sakura, which are likely to merge next year, are rumored to be discussing initiatives that will increase revenues for a merged entity. One of those is thought to be through strengthening their structured finance activities. Sumitomo has lengthy experience of arranging mortgage-backed deals for clients.
Staying with Japan, frozen foods business Nichirei Corp. is thought to be looking at securitizing assets, most probably some of its warehouse premises, in a bid to pay off its debts.