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Hanwha Corp. Experiences Oversubscription in Recent Public Bond Offering

Hanwha Corp.'s bond offering draws immense investor interest, overshooting its target with orders totaling 1.49 trillion won
South Korea
h 000880.KO Mid and Small Cap 2000
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Hanwha Corp., the holding company of Hanwha Group, reported an overwhelming response to its public bond offering on January 17, with orders amassing 1.49 trillion won ($1.14 billion). Initially aimed at 150 billion won ($111 million), the offering attracted a significant volume of investor interest, far exceeding expectations.

The three-year bonds, targeted at 90 billion won, saw a remarkable demand surge, attracting orders over 11 times the intended amount, totaling 1.013 trillion won. The interest rates for these bonds were set within a specified range, based on average market rates as assessed by private bond evaluators, plus or minus a margin of 50 basis points (1bp=0.01 percentage point). Specifically, the two-year bonds were issued at a rate of -16bp, while the three-year bonds were pegged at -25bp.

In light of the robust demand, Hanwha is now considering a hike in the bond issuance size to 250 billion won. The capital raised through this successful offering is earmarked for repaying maturing bonds. Hanwha, a conglomerate overseeing entities like Hanwha Aerospace Co., Hanwha Solutions Corp., Hanwha Life Insurance, and Hanwha Hotel & Resort, has demonstrated a strong presence in the market.

This event follows similar successful bond offerings by other Hanwha subsidiaries. Hanwha Aerospace secured 1.42 trillion won in orders for its 200 billion won bond offering on January 3, while Hanwha Solutions gathered 1.345 trillion won for its 200 billion won issuance on January 5, showcasing the group’s solid financial appeal in the market.

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