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Hyundai Department Store bond sale meets strong investor demand Bids totaling $774 million received during bookbuilding

Translated by Kim So-in 공개 2022-05-23 08:08:21

이 기사는 2022년 05월 23일 08:05 더벨 유료페이지에 표출된 기사입니다.

South Korea’s Hyundai Department Store has attracted 980 billion won ($774 million) in orders from some investors for its first public bond offering this year.

The company’s 200 billion won 3-year bond received orders worth 980 billion won during bookbuilding on Wednesday, according to industry sources. Shinhan Financial Investment, NH Investment & Securities and Kyobo Securities managed the bond sale.

Hyundai Department Store tightened pricing thanks to strong investor demand.
Initial pricing guidance was proposed at between minus 20 and plus 20 basis points of the average yield calculated by major local credit rating agencies. Final pricing on the bond was 7bp below the average yield. On Wednesday, the company’s average yield for the 3-year bond was 3.753%, comparable with an average yield for AA+rated companies.

Pension funds, banks and insurance companies participated in the bookbuilding. The company is reviewing an option to increase the offering to up to 280 billion won.

Final pricing for bonds issued by other AA+ rated companies, including JB Financial Group, SK, Lotte Chemical, Samsung C&T and NH Investment & Securities were all set at 2-25bp above the average yield earlier this year.

Hyundai Department Store’s revenue is starting to improve amid prolonged pandemic and an increase in online purchases. The company recorded 934.4 billion won in revenue in the first quarter, up 36.8% from a year earlier on a consolidated basis. Its operating profit also increased by 36.7% year-over-year to 88.9 billion won in the same period.

The company’s total borrowings increased by 165.9 billion won to 1.25 trillion won in the first quarter and its net borrowings decreased by 92.2 billion won to 273.8 billion won on a consolidated basis. Its cash equivalents increased by 258.2 billion won to 978.2 billion won in the same period. (Reporting by Chan-mi Oh)
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