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

The Asia HY Trade Book for the month of April includes a summary of our recommendations, as well as our high-conviction ideas. The report also features relative-value charts and lists of the bonds in the Lucror Asia HY index.

  The Asia HY Trade Book for the month of April includes a summary of our recommendations, as well as our high-conviction ideas. The report also features relative-value charts and lists of the bonds in the Lucror Asia HY index. 

Asia HY Trade Book - April 2021 - Lucror Analytics

In this month’s “In-Focus” section, we provide an update on the Chinese property sector, including operational trends and regulatory developments, as well as an overview of the FY 2020 results of most developers under our full coverage. The Asia Monthly focuses on providing updates on recent events, information on new issues and spread movements, as well as summarising our top picks, and discussing specific areas of interest in the “In-Focus” section. The Asia Monthly is intended to broaden investors' understanding of the Asian USD high-yield market.

  In this month’s “In-Focus” section, we provide an update on the Chinese property sector, including operational trends and regulatory developments, as well as an overview of the FY 2020 results of most developers under our full coverage.   The Asia Monthly focuses on providing updates on recent events, information on new issues and spread movements, as well as summarising our top picks, and discussing specific areas of interest in the “In-Focus” section. The Asia Monthly is intended to broaden investors' understanding of the Asian USD high-yield market. 

Asia HY Monthly - Chinese Property Update (2021) - Lucror Analytics

Tunas Baru Lampung (TBLA) has begun marketing an issuance of USD 400 mn 5NC2 senior unsecured Notes. The Notes are expected to be rated B1/B+ by Moody’s and Fitch, on a par with the issuer ratings. The proceeds are expected to be used to: [1] redeem the USD 250 mn 7% Notes due January 2023 at 103.5; [2] repay IDR 1.5 tn (USD 106 mn) of domestic Notes due in 2023 and 2025; [3] repay up to USD 18 mn of short-term loans; and [4] pay transaction costs and fund the interest reserve account, for a total of c. USD 17 mn.  We expect the new Notes to price at 7.0-7.5%.

  Tunas Baru Lampung (TBLA) has begun marketing an issuance of USD 400 mn 5NC2 senior unsecured Notes. The Notes are expected to be rated B1/B+ by Moody’s and Fitch, on a par with the issuer ratings.   The proceeds are expected to be used to: [1] redeem the USD 250 mn 7% Notes due January 2023 at 103.5; [2] repay IDR 1.5 tn (USD 106 mn) of domestic Notes due in 2023 and 2025; [3] repay up to USD 18 mn of short-term loans; and [4] pay transaction costs and fund the interest reserve account, for a total of c. USD 17 mn.    We expect the new Notes to price at 7.0-7.5%. 

Tunas Baru - Event Flash - Marketing USD 400 Mn 5NC2 Notes  - Lucror Analytics

The FY 2020 results of Tunas Baru Lampung (TBLA) were mixed. While earnings growth was strong, we deem the company’s continued poor FCF generation a major credit negative. Debt continued to climb, in order to fund the FCF deficit, albeit earnings-based leverage was stable. Liquidity is poor, with TBLA reliant on short-term debt funding. It is unclear whether the company can successfully issue new Notes to refinance the ‘23s, given the current weak financing environment. In its latest media release, TBLA announced that the tenor of its planned bond issuance has been shortened to five years, from seven years as stated previously.

  The FY 2020 results of Tunas Baru Lampung (TBLA) were mixed. While earnings growth was strong, we deem the company’s continued poor FCF generation a major credit negative. Debt continued to climb, in order to fund the FCF deficit, albeit earnings-based leverage was stable. Liquidity is poor, with TBLA reliant on short-term debt funding.   It is unclear whether the company can successfully issue new Notes to refinance the ‘23s, given the current weak financing environment. In its latest media release, TBLA announced that the tenor of its planned bond issuance has been shortened to five years, from seven years as stated previously. 

Tunas Baru - Earnings Flash - FY 2020 Results - Lucror Analytics

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-7962'>Redco Properties</a></li><li><a href='#lucror-entity-3537'>Tower Bersama Infrastructure</a></li><li><a href='#lucror-entity-17690'>Tunas Baru Lampung</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.Redco PropertiesTower Bersama InfrastructureTunas Baru Lampung

Morning Views Asia: Redco Properties, Tower Bersama Infrastructure, Tunas Baru Lampung

Indonesia

PT Tunas Baru Lampung Tbk is an Indonesian company that produces and sells vegetable cooking oil, sugar, and crude palm oil both domestically and internationally. The company operates in two segments: Plantations and Manufacturing, offering products like palm cooking oil, palm kernel oil, stearine, sugar, and soaps. It also engages in palm oil and sugarcane plantation activities. The company was founded in 1973 and is headquartered in Jakarta, Indonesia.

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Tunas Baru Lampung (TBLA IJ)

Asia HY Trade Book - April 2021 - Lucror Analytics

The Asia HY Trade Book for the month of April includes a summary of our recommendations, as well as our high-conviction ideas. The report also...

Lucror Analytics

Asia HY Monthly - Chinese Property Update (2021) - Lucror Analytics

In this month’s “In-Focus” section, we provide an update on the Chinese property sector, including operational trends and regulatory...

Lucror Analytics

Tunas Baru - Event Flash - Marketing USD 400 Mn 5NC2 Notes - Lucror Analytics

Tunas Baru Lampung (TBLA) has begun marketing an issuance of USD 400 mn 5NC2 senior unsecured Notes. The Notes are expected to be rated B1/B+ by...

Lucror Analytics

Tunas Baru - Earnings Flash - FY 2020 Results - Lucror Analytics

The FY 2020 results of Tunas Baru Lampung (TBLA) were mixed. While earnings growth was strong, we deem the company’s continued poor FCF...

Lucror Analytics

Morning Views Asia: Redco Properties, Tower Bersama Infrastructure, Tunas Baru Lampung

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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