Hotel Shilla, Orion manage to issue debt in overwhelming response

2020.04.17 15:15:04 | 2020.04.17 15:15:44

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Latest investment-grade debt issuers from Korea - Hotel Shilla Co. and Orion Corp. – easily sold off their offering in oversubscription to suggest signs of recovery in demand for Korean corporate papers after a virus scare.

Hotel Shilla rated AA drew 250 billion won ($205 million) worth of bids for its offering of 150 billion won in unsecured corporate notes during a book building session held Thursday.

The tranche was 110 billion won in 3-year date, 20 billion won in 5-year bonds and 2- billion won in 10-year notes.

State-sponsored bond market stabilization fund budgeted 20 trillion won put up orders for 50 billion won worth. The main underwriters for Hotel Shilla’s debt offerings were KB Securities and NH Investment & Securities.

Orion, country’s leading confectionary maker rated AA0, received 350 billion won worth orders, five times its offer of 70 billion won in 3-year unsecured bonds. The state-backed fund placed bids worth 30 billion won. Its underwriter was KB Securities.

Earlier offerings had not been so lucky.

On Monday, Hanwha Solutions Corp., chemical manufacturer with AA- rating, managed to draw only 60 billion won for its offering of 210 billion won 3-year bonds. Also, four debts offerings were undersubscribed in institutional sale in March.

By Pulse

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