Korea’s investment-grade bonds sold out in overwhelming demand

2020.10.08 16:22:31 | 2020.10.08 16:25:02

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Investors’ appetite for investment-grade bonds in South Korea stayed sizzling in the second half.

Hyundai Heavy Industries Holdings Co., the holding company of South Korea’s largest shipbuilder Korea Shipbuilding & Offshore Engineering, on Wednesday attracted 247 billion won ($213.3 million) for its offering of 80 billion won three-year unsecured bonds. Its A- rated debt was priced at 50 basis points above the market average.

The company is to float the debts on Oct. 16 without additional issuances.

On the same day, the country’s leading game developer Netmarble Corp. tapped demand for three-year AA- rated bonds to raise 80 billion won. Its offering pulled in 560 billion won, setting the price at 7 basis points below the market average.

Both book-building sessions were led by KB Securities and NH Investment & Securities.

GS Energy Corp’s debt sales also ended in a success, despite growing market uncertainties from the Covid-19 pandemic. The holding company of GS Group’s energy units including the country’s second largest oil refiner GS Caltex, offered AA0 rated unsecured debts in two tranches – 100 billion won in five-year bonds and 50 billion won in 10-year notes.

All of its debts were sold out, attracting total 660 billion won for the 150 billion won offering. Price of the five-year bond was set at 4 basis points below market average and 10-year debt 40 basis points below.

By Ahn Gab-seong and Cho Jeehyun

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