Coway’s record-high performance last year(68,300 -2.15%)Begins to issue corporate bonds in 10 years. This is to secure long-term funds as much as possible when interest rates are low. Considering the strong atmosphere of the corporate bond market at the beginning of the year and the firm’s strong growth, it is expected to succeed in a box office without difficulty.
According to the investment banking (IB) industry on the 18th, Coway plans to issue corporate bonds worth 250 billion won at the beginning of next month. We are considering dividing the maturity into three years and five years. The company recently received an’AA-‘ credit rating from the Korea Credit Rating and started preparing for issuance in earnest. Korea Investment & Securities and KB Securities were in charge of issuance.
Coway’s corporate bond issuance is the first time since it issued foreign currency bonds worth $60 million (about KRW 66.3 billion) in April 2011. The company has been raising necessary funds through bank loans and issuance of corporate papers (CP). In most cases, liquidity was secured with a maturity of less than 1 year. However, when the market interest rate was low, it was decided to issue corporate bonds after a long time to secure cash with a relatively long maturity. On the 17th, the average rate of AA-grade corporate bonds (three-year bonds) evaluated by private bond appraisers was 1.301% per year, down 0.486% points for 10 months since April 22 (1.787% per year), when fear of the spread of Corona 19 was severe. . It is evaluated that the corporate bond market has stabilized as expectations for an economic recovery have been raised due to the government’s active economic stimulus measures and the supply of the Corona 19 vaccine.
An official from the IB industry said, “With the credit rating of Coway, it is possible to issue bonds at an annual interest rate of 1%.” Evaluated as.
Reporter Kim Jin-sung [email protected]
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