Aegis Asset Management: "More Than Twice the Target Amount Raised in Public Bond Demand Forecast"

Aegis Asset Management succeeded in attracting strong demand in its public bond subscription despite the contraction in the domestic real estate market.

Aegis Asset Management announced on the 7th that it received purchase orders worth 66 billion KRW in a demand forecast conducted for institutional investors on the 6th ahead of its corporate bond issuance. This amount is more than twice the initially targeted subscription amount.

The desired interest rate range proposed by Aegis Asset Management was 6.5?7.2%, but the final subscription was filled at 7.0%. The relatively stable short-term bonds compared to medium- to long-term bonds of two years or more, offering an interest rate merit in the 6?7% range, attracted investors' attention.

The funds raised through this bond issuance will be used to repay existing borrowings to enhance financial stability. The maturity of the public bonds is 1.5 years, with the scheduled issuance date on the 16th of this month.

Credit rating agencies assigned an 'A- (Stable)' credit rating to Aegis Asset Management's corporate bonds this time. Korea Ratings cited ▲excellent market position in the real estate fund management market ▲strong profit-generating capability ▲stabilization of the business base ▲sound financial stability as evaluation grounds. Additionally, Korea Investors Service also gave favorable evaluations such as ▲good business stability ▲favorable leverage ratio.

An official from Aegis Asset Management analyzed, “The success of this corporate bond demand forecast is significant in that the subscription exceeded the issuance volume amid frozen investor sentiment due to recent concerns over real estate project financing (PF) defaults and unstable international situations,” adding, “This outcome reflects the industry's top-level business competitiveness and sound financial stability.”

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