Korea construction firm Doosan Infracore closed a $500 million hybrid on Tuesday night, and bankers expect that its structure will be replicated by other lower-rated borrowers that would struggle to raise funds or have to pay up on a standalone basis.
The 30-year non-call five-year hybrid was unique as it offered a credit enhancement and a put option to investors. Korea Development Bank, Woori Bank and Hana Bank, which are all investment-grade banks, act as credit-facility providers and will provide funding for the put.
Investors can put the bonds at par at the fifth year, and there are also caveats under which they are able to sell...
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