Lotte Chemical to expand debt issue on overwhelming response to new offering

2020.07.22 15:09:16 | 2020.07.22 15:41:52

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Lotte Chemical Corp. will stretch its new debt issue as its offering of 200 billion won ($167.5 million) was met with overwhelming institutional demand on Tuesday.

According to investment banking sources, Lotte Chemical drew a whopping 1.01 trillion won bids for its 200 billion won worth debt offering in book-building session on Tuesday.

It received 660 billion won worth of orders for 150 billion won bonds in a three-year maturity, 350 billion won for 50 billion won of five-year notes.

The heated response underscores strong appetite for AA+-rated bonds amid rising market uncertainties from the ongoing virus outbreak.

Lotte Chemical is mulling to scale up the offering amount by 100 billion won to take advantage of cheaper borrowing rates.

In April last year, Lotte Chemical expanded its debt issue to 400 billion won after its 300 billion won offering drew over 1 trillion won during book-building.

Lotte Chemical shares closed Wednesday 3.14 percent higher at 180,500 won in Seoul.

By Pulse

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