Lotte Construction Attracts 710 Billion Won for 120 Billion Won Corporate Bonds... Record-Breaking Success

On the 18th, Lotte Construction announced that it secured a record-high investment order of 710 billion KRW in a public bond demand forecast targeting institutional investors, for a 120 billion KRW issuance. This is the largest order since the introduction of demand forecasting in 2012, surpassing the previous high of 467 billion KRW secured in March 2019.

Institutional investors participating in the demand forecast included the Special Purpose Vehicle (SPV) for corporate liquidity support and pension funds, placing large-scale bids, which led to success not only in quantity but also in quality.

Additionally, many institutions placed purchase orders at negative spread rates, securing the issuance amount at double-digit negative rates for both the 2-year and 3-year tranches.

The bonds can be issued at historically low interest rates, below the current individual market average yields of 1.437% for 2 years and 1.661% for 3 years.

Riding on the success of the demand forecast, Lotte Construction is considering increasing the issuance amount up to 200 billion KRW. Even with the increase, it is expected that the spread will be around -10 basis points compared to the individual market average.

Despite the crisis management environment caused by the spread of COVID-19 last year, Lotte Construction achieved an operating profit of approximately 360 billion KRW, a 17% increase compared to the previous year, and recorded sales exceeding 5 trillion KRW for four consecutive years.

Ha Seok-ju, CEO of Lotte Construction, stated, "We have focused on securing financial stability centered on cash flow," and added, "Going forward, we plan to concentrate all company capabilities on discovering excellent projects and strengthening technological competitiveness to sustain growth."

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