GH Issues 150 Billion Won in Corporate Bonds After 7 Years... Establishing a Foundation for Stable Promotion of 3rd Phase New Town Development

[Asia Economy (Suwon) = Reporter Lee Young-gyu] Gyeonggi Housing and Urban Corporation (GH) is issuing construction bonds worth 150 billion KRW for the first time in seven years.

GH announced that it will publicly offer 150 billion KRW in construction bonds through an electronic bidding method on the 22nd. This is GH's first issuance of construction bonds since October 2014, seven years ago.

The winning bid determination method is the single interest rate method (Dutch method). The single interest rate method sets the highest interest rate among the rates proposed by each successful bidder as the issuance rate.

Last month, GH received approval from the Ministry of the Interior and Safety for construction bonds totaling 950 billion KRW. The funds raised through the bond issuance will be used as resources for the 3rd New Town project. Of the approved 950 billion KRW, the remaining 800 billion KRW will be issued sequentially this year in accordance with the compensation schedule.

Additionally, on the 24th of last month, GH was notified by the Ministry of the Interior and Safety of the 'Local Government Bond Issuance and Operation Standards,' which relaxed the bond issuance limit to support the metropolitan area housing supply project.

The Ministry of the Interior and Safety exceptionally relaxed GH's construction bond issuance limit, which was originally restricted to a debt ratio of 300%, to a debt ratio of 350% only for public housing projects such as the metropolitan area's 3rd New Town project and equity accumulation housing projects.

Accordingly, GH has secured additional bond issuance capacity of 2.1 trillion KRW, providing momentum to advance the 3rd New Town project.

Lee Heon-wook, President of GH, stated, "With the Ministry of the Interior and Safety's approval of the construction bonds and the relaxation of the bond issuance limit, we have gained the driving force to successfully promote the 3rd New Town project," and promised, "We will do our best to create a 3rd New Town where everyone wants to live."

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