Naver's Corporate Bond Demand Forecast Hits 1.7 Trillion Won Success

KRW 150 Billion Fundraising Attracts KRW 1.744 Trillion

Naver (AA+), returning to the domestic public bond market after 3 years, succeeded in attracting about 1.7 trillion KRW, more than 10 times the target amount, in its corporate bond demand forecast.

According to the investment banking (IB) industry on the 16th, Naver conducted a corporate bond demand forecast to raise 150 billion KRW on the day, receiving orders totaling 1.744 trillion KRW, including 1.339 trillion KRW for the 3-year bonds with a target amount of 120 billion KRW and 405 billion KRW for the 5-year bonds with a target amount of 30 billion KRW.

The 3-year and 5-year bonds were filled at -13bp and -21bp respectively, successfully achieving an under issuance. Previously, Naver had presented a desired interest rate band of ±30bp based on the average market rate.

Photo by Jinhyung Kang aymsdream@

Following the success of this demand forecast, Naver plans to consider increasing the issuance by up to 250 billion KRW. The funds raised through this corporate bond issuance will be used entirely to refinance corporate bonds maturing on the 25th of next month.

Previously, in February 2021, Naver issued a total of 700 billion KRW in corporate bonds, including 250 billion KRW for 3-year bonds and 450 billion KRW for 5-year bonds. At that time, due to the low interest rate environment, Naver increased the proportion of 5-year bonds, but as market interest rates rose after 3 years, the proportion of 5-year bonds was reduced this time.

Naver’s credit rating is 'AA+ (stable)' from all three domestic credit rating agencies. As of the end of Q3 last year, Naver’s standard debt ratio was 49.3%, and its debt dependency was 13%. Its cumulative sales for Q3 last year were 7.1336 trillion KRW, with an operating profit of 1.083 trillion KRW.

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