Mirae Asset Global Investments to raise $250 mil in bond sale Korean asset manager aims to reduce interest burden

Translated by Kim So-in 공개 2022-01-28 08:11:03

이 기사는 2022년 01월 28일 08:08 더벨 유료페이지에 표출된 기사입니다.

South Korea’s Mirae Asset Global Investments plans to raise up to 300 billion won ($250 million) in a bond issuance to reduce its interest burden by refinancing existing securitized debts with new debts.

Mirae Asset Global Investments is discussing a plan to issue a bond with its lead bookrunners - KB Securities and NH Investment & Securities – according to industry sources on Wednesday. The company will launch bookbuilding as early as the second week of February.

The company targets to raise up to 300 billion won in two tranches with three-year and five-year maturities, sources said.

The 300 billion won bond sale, if successful, will mark the largest ever in Mirae Asset Global Investments' history. The firm raised funds through five bond issues between 2015 and 2021. It raised 100 billion won in two tranches with three-year and five-year maturities in January last year.

The firm has increased the target amount as existing debt worth about 170 billion won will reach maturity this year. Securitized debts with a three-year maturity will mature in the first half and loans worth some 90 billion won taken out from NongHyup Bank, Commercial Bank of China, and United Overseas Bank will reach maturities between May and August.

“We plan to raise up to 300 billion won and use the proceeds to repay existing debt,” an official at Mirae Asset Global Investments said.

The company also aims to refinance its existing securitized debts with a new loan at lower rates.

Mirae Asset Global Investments has issued its bond at an interest rate ranging from minus 20 to plus 15 basis points of an average interest rate rated by domestic credit rating agencies. The bond issued by the firm has an average interest rate rated by domestic credit rating agencies of 2.75% for a three-year bond and 2.9% for a five-year bond. It is expected to issue both bonds in a mid-to-upper 2% range depending on the bookdbuilding process.

Mirae Asset Global Investments is the the country's second largest asset manager by market share, with 113 trillion won in total assets under management as of the end of 2021.

The firm has generated revenue of 500 billion won-600 billion won annually in recent years, with an operating profit margin of around 30%. It logged revenue of 700 billion won and an operating profit of 312.4 billion won from January to September last year, up by 44% and 83% year-on-year respectively.

Three local credit rating agencies granted a credit rating of AA0 with a stable outlook on the company. (Reporting by Joon-woo Nam)
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