HDC Secures Over Four Times Target Amount in Corporate Bond Bookbuilding

(Seoul=Yonhap Infomax) Eun Byul Yun – HDC Co., Ltd. (KRX: 012630), a South Korean construction and real estate development company, received orders exceeding four times its target in a recent corporate bond bookbuilding.

According to investment banking (IB) industry sources on the 20th, HDC conducted a bookbuilding for its corporate bonds with a target of 50 billion won ($37.5 million), attracting a total of 223 billion won ($167.2 million) in purchase orders.

For the two-year tranche, 30 billion won ($22.5 million) was offered, drawing 121 billion won ($90.8 million) in bids. The three-year tranche, set at 20 billion won ($15 million), received 102 billion won ($76.4 million) in orders.

The credit spreads were set at minus 5 basis points for the two-year bonds and minus 4 basis points for the three-year bonds, based on the reported reference rates.

The initial guidance range was presented at ±50 basis points over the average market yield for each maturity and rating. The maximum issuance limit was 100 billion won ($75 million).

Korea Ratings, Korea Investors Service, and NICE Investors Service assigned an 'A0 (Stable)' credit rating to HDC's corporate bonds.

Of the funds raised, 20 billion won ($15 million) will be used to repay existing bonds, while 30 billion won ($22.5 million) will be allocated for operating expenses, including management of rental assets and repayment of accounts payable.

ebyun@yna.co.kr

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