DL E&C Secures 725 Billion KRW Through ESG Bonds and Corporate Bond Public Offering

[Asia Economy Reporter Onyu Lim] DL E&C (formerly Daelim Industrial) secured a total of 725 billion KRW in funds from the corporate bond market for the first time since its split. This is the largest amount since entering the public bond market in 2015 before the split.

According to DL E&C on the 11th, the demand forecast conducted prior to the corporate bond issuance on the 8th received subscription amounts of 150 billion KRW for the 3-year bonds and 225 billion KRW for the 5-year bonds, with bids of 500 billion KRW and 225 billion KRW respectively.

In particular, the 5-year 50 billion KRW bonds were issued as ESG bonds and recorded a high subscription competition rate. Due to the successful demand forecast, the company plans to increase issuance to 200 billion KRW for the 3-year bonds and 95 billion KRW for the 5-year bonds.

This is analyzed to be the result of solid financial soundness and an effective ESG bond issuance strategy in attracting investors.

The ESG bonds issued by DL E&C are bonds issued for the purpose of social responsibility investment, including Environment (E), Social (S), and Governance (G). Prior to issuance, a preliminary certification evaluation was conducted through Korea Ratings, and the highest grade in the sustainability category, 'ST1,' was awarded.

The funds raised this time are planned to be used for new water treatment businesses, eco-friendly construction, and support for partner companies' funding.

Recently, the company acquired shares in 'United Water,' a leading Chinese water treatment platform company. In addition, the amount raised through ESG bonds will be used for eco-friendly, high-efficiency building construction and a win-win cooperation fund to alleviate the financial burden of partner companies.

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