Samsung Securities' Strong Performance Leads to 540 Billion KRW Public Bond Success

Raising Funds at the Lowest Interest Rate Among AA+ or Higher Rated Companies This Year with Demand Forecast Competition Exceeding 4 to 1

[Asia Economy Reporter Song Hwajeong] Samsung Securities announced on the 17th that it successfully completed the issuance of corporate bonds worth a total of 540 billion KRW on the 25th of last month.

This corporate bond issuance was Samsung Securities' first public bond issuance through demand forecasting, and was raised at the lowest interest rate among AA+ or higher (including AAA ratings) corporate bonds issued in 2020, due to superior financial stability compared to the industry. In particular, as a result of demand forecasting conducted for institutional investors on the 17th of last month, 1.25 trillion KRW was attracted for the 3-year bonds, recording a competition rate exceeding 5 to 1. For the 5-year bonds, 430 billion KRW was attracted, showing a competition rate exceeding 4 to 1.

A financial investment industry official said, "The issuer's high financial soundness was one of the indicators of the popularity of this corporate bond demand," and added, "Attention is being paid to the fact that Samsung Securities is generating stable profits, having escaped from various incidents and accidents in the financial investment industry recently."

Samsung Securities has maintained stable profits even last year when the stock market conditions were unfavorable, and is recently regarded as the 'Top Pick' in the securities sector among analysts.

Samsung Securities recorded a pre-tax profit of 522.6 billion KRW last year, an increase of 13.3% compared to the previous year, and net profit reached 391.8 billion KRW, up 17.3%, marking an all-time high.

Analysts forecast that Samsung Securities' strong performance will continue this year due to steady profits from a balanced business model of retail, corporate finance (IB), and asset management, as well as efforts such as increasing dividend payout ratios through shareholder-friendly policies. Heeyeon Lim, a researcher at Shinhan Financial Investment, evaluated, "Samsung Securities recorded an earnings surprise last year, greatly exceeding market consensus, and is the only securities company expected to increase earnings this year." He also presented Samsung Securities as the top recommended stock in the securities sector, citing expectations for stable profit flow and shareholder-friendly dividend policies.

Samsung Securities decided at the board meeting in January to pay a total dividend of 151.8 billion KRW to shareholders, an increase of 21.4% compared to the previous year. The dividend payout ratio also expanded to 38.7% compared to the previous year.

This content was produced with the assistance of AI translation services.