Dongwon F&B's Corporate Bond Public Offering a Success... Raised 155 Billion Won

Demand forecast application volume exceeds three times the募集量
For operating funds and repayment of existing corporate bonds

Dongwon F&B succeeded in its corporate bond public offering for the first time in three years.

On the 28th, Dongwon F&B announced that it issued corporate bonds totaling 155 billion KRW, consisting of 85 billion KRW in 2-year bonds and 70 billion KRW in 3-year bonds. The funds raised this time are planned to be used as operating capital for purchasing raw fish and pork, which are key raw materials for its main products, as well as for repaying existing corporate bonds.

In the demand forecast conducted on the 17th prior to the bond issuance, more than 362 billion KRW, over three times the initially planned amount, was gathered, leading to an increase in the issuance size from the original target of 100 billion KRW to 155 billion KRW. The issuance interest rates were also finalized at 4.787% for the 2-year bonds, 11 basis points (1bp=0.01%) lower than the private bond evaluation rate, and 4.966% for the 3-year bonds, 10 basis points lower.

It is analyzed that Dongwon F&B’s strong market dominance in its core business and favorable credit rating drove the investment demand. Dongwon F&B has been rated A+ (stable) for its corporate bonds by Korea Ratings and NICE Investors Service.

A Dongwon F&B official stated, “Based on our market-dominant business, we will actively pursue differentiated product development and global expansion to build a sustainable growth structure.”

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