2020.06.01(월)

전체기사

Korea Seven raises $30mn from shogun bonds South Korea's retailers like E-mart start to focus on the Japanese bond market

Translated by Kim So-in 공개 2020-04-01 08:00:39

이 기사는 2020년 04월 01일 08:00 더벨 유료페이지에 표출된 기사입니다.

Korea Seven, the South Korean operator of convenience store giant 7-Eleven, successfully raised $30 million from its issuance of shogun bonds, which refer to bonds issued in Japan, in a non-yen denomination, by foreign entities.

Korea Seven issued a $30 million (36.9 billion won) shogun bond on March 25, sources familiar with the matter said. The company sold the bond at a rate of 105 basis points above the Libor rate.

The bond was issued through a private placement, all of which was acquired by Sumitomo Mitsui Banking Corporation (SMBC), making the issuance practically a bank borrowing.

Korea Seven had been preparing the issuance before the spread of the coronavirus, but the actual offering took place on March 25 due to delays in its fundraising schedule. In the meanwhile, global financial markets have been hit hard by the spread of the coronavirus and Korea Seven’s plan to sell won-denominated bonds in a public offering has been postponed indefinitely.

With Korea Seven’s sale of shogun bonds, domestic retailers start to pay attention to the Japanese bond market. Currently, South Korean bond market conditions are so unfavorable that even an AA-rated bond offering doesn’t go smoothly. On the contrary, domestic retailers may raise funds relatively easily by selling shogun bonds if a company and a Japanese bank agree to some fundraising conditions in a de facto loan from the Japanese bank.

Domestic retail giants like E-mart raised funds via shogun bond issuance. E-mart sold $150 million shogun bonds in 2016 and 2019, respectively. It is said that Lotte Group and Shinsegae Group are paying attention to the Japanese bond market as their subsidiaries sold shogun bonds in the past.

(By reporter Pi Hye-rim)
< 저작권자 ⓒ 자본시장 미디어 'thebell', 무단 전재 및 재배포 금지 >

더벨 서비스 문의

02-724-4104

유료 서비스 안내
(주)더벨
주소서울특별시 중구 무교로 6 (을지로 1가) 금세기빌딩 5층대표/발행인성화용편집인이진우등록번호서울아00483등록년월일2007.12.27 / 제호 : 더벨(thebell)
발행년월일2007.12.30청소년보호관리책임자이현중
문의TEL : 02-724-4100 / FAX : 02-724-4109서비스 문의 및 PC 초기화TEL : 02-724-4103기술 및 장애문의TEL : 02-724-4159

더벨의 모든 기사(콘텐트)는 저작권법의 보호를 받으며, 무단 전재 및 복사와 배포 등을 금지합니다.

copyright ⓒ thebell all rights reserved.