Dongwon Industries Raises 270 Billion KRW Through Corporate Bond Offering

Demand Forecast Target Surpassed Fourfold with 645 Billion Won Attracted

Dongwon Industries announced on the 19th that it has issued corporate bonds worth a total of 270 billion KRW.

Photo by Dongwon Industries

The corporate bonds consist of 150 billion KRW in 3-year bonds and 120 billion KRW in 5-year bonds. The raised funds are planned to be used for repaying existing corporate bonds and for operating expenses.

Dongwon Industries maintains a corporate bond credit rating of 'AA- (Stable)' assigned by Korea Ratings and NICE Investors Service. During the demand forecast conducted on the 11th, investment demand exceeded four times the initial target amount, reaching 645 billion KRW, leading to an increase in the bond issuance size from the original 150 billion KRW to 270 billion KRW. As investment demand surged, the issuance interest rates also decreased. Despite unfavorable market conditions characterized by economic downturn and high interest rate volatility, the 3-year bonds were fixed at 4.345%, which is 1bp (1bp = 0.01%) lower than the market average rate (private bond evaluation rate), and the 5-year bonds were fixed at 4.531%, 2bp lower.

Since becoming the group’s new business holding company through the merger with Dongwon Enterprises last year, Dongwon Industries has significantly expanded its business portfolio. Last year’s sales surpassed 9 trillion KRW, the highest level since the company’s founding, and it continues to actively invest in future new businesses such as land-based salmon farming, smart port cargo handling, and secondary battery materials.

A Dongwon Industries representative said, "Based on the expanded business portfolio after the merger, profit-generating capabilities have been strengthened, and business synergies are now fully materializing. As we have established a leading market position in our core business areas, we will continue efforts to maintain active future investments and a stable financial structure."

Meanwhile, Dongwon Systems, a comprehensive packaging and secondary battery materials specialist company within the Dongwon Group, successfully raised a total of 100 billion KRW in funding in April through corporate bond issuance, with investment demand far exceeding the target amount.

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