KT Skylife's Corporate Bond Demand Forecast Hits High... Considering Increase of Up to 200 Billion KRW

410 Billion Won Raised for 100 Billion Won Corporate Bond Offering

[Asia Economy Reporter Koo Eun-mo] KT Skylife, which is set to acquire Hyundai HCN, is issuing corporate bonds for the first time in six years. Following the success of the demand forecast (pre-subscription), an increase in issuance is also being considered.

On the 24th, KT Skylife announced on the 25th that it received orders worth 240 billion KRW for the 3-year bonds with a target of 70 billion KRW, and 170 billion KRW for the 5-year bonds with a target of 30 billion KRW, totaling 100 billion KRW in issuance with 410 billion KRW in orders. Skylife, which plans to issue corporate bonds on the 2nd of next month, is considering increasing the issuance up to 200 billion KRW following the successful demand forecast. Skylife proposed an interest rate band of minus (-) 20 basis points (1bp=0.01 percentage points) to 20bp, filling the 3-year bonds at -1bp and the 5-year bonds at -4bp.

In October last year, Skylife signed a contract to acquire 100% of the shares of Hyundai HCN and Hyundai Media for 520.1 billion KRW, of which 10% was paid as a deposit. The remaining payment will be made after the approval decision from the Fair Trade Commission and the Ministry of Science and ICT, which are currently in progress. The funds raised this time are planned to be used for the acquisition of Hyundai HCN.

Yang Chun-sik, Head of Management Planning at Skylife, stated, “Despite the bond market investment sentiment being subdued due to expectations of a faster base interest rate hike, Skylife believes that the recognition of improved consolidated financial capacity through the acquisition of HCN led to investment funds exceeding four times the amount of the corporate bond issuance.”

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