Dongwon F&B's Corporate Bond Offering a Success, Attracts Over 12 Times Target with 730 Billion KRW in Demand

Investor Demand Surges, Doubling Corporate Bond Issuance
Dongwon F&B to Issue Bonds Worth 120 Billion KRW

Dongwon F&B announced on August 18 that it has achieved strong results in its public offering of corporate bonds, leveraging the company's market dominance in its core businesses and financial stability.

Dongwon F&B plans to issue corporate bonds totaling 120 billion KRW, consisting of 70 billion KRW in two-year bonds and 50 billion KRW in three-year bonds. The funds raised will be used for the repayment of existing corporate bonds and other purposes.

During the book-building process held on August 13, investor demand reached 730 billion KRW, more than 12 times the planned issuance amount, prompting the company to increase the bond issuance from 60 billion KRW to 120 billion KRW. Due to the strong demand, the coupon rates were also lowered, with the two-year bonds to be issued at -15 basis points (1bp=0.01%P) below the private bond evaluation rate, and the three-year bonds at -30 basis points below the same benchmark.

Dongwon F&B explained that the successful public offering was driven by the company's solid market leadership in the food business, its stable financial structure, and expectations for export growth.

Thanks to the expansion of exports in strategic categories such as pet food, tteokbokki, seasoned seaweed, and beverages, as well as diversification of its product portfolio, Dongwon F&B recorded sales of 2.3506 trillion KRW and operating profit of 88.8 billion KRW in the first half of this year.

The company's corporate bonds have been rated 'A+ (Stable)' by both Korea Ratings and NICE Investors Service.

A Dongwon F&B representative stated, "We successfully secured large-scale funding thanks to the solid performance of our core businesses, a stable business portfolio, and strong brand competitiveness," adding, "Having laid the foundation for global expansion through business restructuring, we will further increase exports by developing locally tailored products and enhancing marketing efforts."

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