GS Caltex mulls doubling bond issue on heated appetite from investors

2021.02.22 15:20:22

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South Korea’s oil refiner GS Caltex Corp. is considering doubling its debt offering after it attracted overwhelming demand for its 200 billion won ($180.3 million) notes in multi-tranche.

The company drew 940 billion won orders from institutional investors during a book building session last Friday, according to sources from the financial industry on Monday. The bonds were offered in four tranches – 30 billion won in a three-year maturity, 80 billion won in five-year bonds, 60 billion won in 10-year notes and 30 billion won in 15-year bonds.

It received 190 billion won orders for the three-year debts, 520 billion won for the five-year notes, 130 billion won for the 10-year bonds and 100 billion won for the 15-year bonds.

It plans to increase the issuance to up to 400 billion won on March 3.

Despite the operating loss amounting to 919.2 billion won due to the oil price drop amid Covid-19 last year, it has maintained its AA+ rating thanks to its sound financial structure.

Market analysts believe the company was able to draw heated response from the investors thanks to its sound financial integrity despite unfavorable market situation.

By Pulse

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