Hanon Systems Sees Strong Demand in Bond Book-Building… Increases Issuance to 220 Billion Won

Demand Surges to Nearly 10 Times the Offering Amount

Hanon Systems announced on April 20 that it secured orders totaling 1.615 trillion won during its corporate bond book-building held on the 16th, recording demand about 10 times the planned issuance amount. The company decided to increase the issuance from the originally planned 150 billion won to 220 billion won.

Strong demand was confirmed for both the two-year and three-year bonds, with issuances expanded to 100 billion won and 120 billion won, respectively. Despite the increase, the coupon rates dropped by approximately 0.2 to 0.3 percentage points compared to the initial guidance, indicating that investors displayed a high level of trust by providing stable funding. The final coupon rates are scheduled to be determined later this week.

Hanon Systems recently had its credit outlook upgraded from "negative" to "stable," reflecting improvements in its performance and strengthened financial stability. In particular, the company’s integration into Korea & Company Group has led to enhanced operational efficiency and profitability, which have positively influenced the assessment.

Hanon Systems achieved both top-line growth and improved profitability last year, recording annual sales of 10.8837 trillion won and an operating profit of 270.4 billion won. The company has also maintained stable profitability in recent quarters.

A Hanon Systems official stated, "This reflects the market’s positive assessment of our improved fundamentals and mid- to long-term growth potential," adding, "We will continue to strengthen trust with the capital markets based on a stable financial structure."

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