Hyundai Construction Corporate Bonds Surpass Demand Forecast Target by Over 4 Times

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Hyundai Construction, which has launched its first corporate bond issuance since the Taeyoung Construction workout crisis, attracted funds amounting to four times its target in the demand forecast.

On the 23rd, Hyundai Construction announced, "We gathered investment demand of 685 billion KRW, more than four times the 160 billion KRW scale demand forecast conducted the previous day." Hyundai Construction's credit rating is ‘AA- (stable)’. For the 2-year bonds with a subscription amount of 80 billion KRW, 280 billion KRW was attracted. For the 3-year bonds with 60 billion KRW, 240 billion KRW was received, and for the 5-year bonds with 20 billion KRW, 165 billion KRW was submitted. Hyundai Construction is considering expanding the corporate bond issuance amount as it achieved demand forecasts exceeding the subscription amount.

Hyundai Construction proposed a range of -30bp to +30bp (1bp = 0.01 percentage points) from the individual average market interest rate, filling the volume at -5bp for 2-year bonds, +3bp for 3-year bonds, and +10bp for 5-year bonds based on the subscription amount. The procured funds will be used to repay maturing debts and for operating expenses such as material costs.

A Hyundai Construction official said, "Despite unfavorable market conditions such as tightening capital markets, slowdown in the construction industry, and decline in the housing sales market, we achieved an oversubscription rate of 4.3 to 1 in the demand forecast," adding, "We confirmed interest rate competitiveness within the ‘AA-’ rating."

Hyundai Construction also raised nearly three times the subscription amount in a demand forecast for a 120 billion KRW corporate bond issuance in August last year.

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