Hanshin Gongyeong Issues 50 Billion KRW Corporate Bonds

Hanshin Engineering & Construction announced on the 6th that it issued corporate bonds worth 50 billion KRW on the 28th of last month.

These corporate bonds were issued to refinance the 48th series of corporate bonds worth 50 billion KRW issued in February last year. The interest rate is 9.5%, the same as the previous year's corporate bond rate. The maturity is one year, and KB Securities underwrote the issuance.

Hanshin Engineering & Construction also announced that it fully repaid the 46th series of corporate bonds worth 85 billion KRW issued in 2022 on the 22nd of last month using its cash equivalents (405.9 billion KRW as of the third quarter disclosure) held internally.

According to the Korea Financial Investment Association, Hanshin Engineering & Construction's corporate bond maturities this year amount to 185 billion KRW. Among these, the repayment and refinancing issuance of 135 billion KRW in corporate bonds that matured last month have been completed. The remaining 50 billion KRW is also scheduled for additional repayment this year. This amount corresponds to the 3-year maturity bond collateralized securities (P-CBO) issued in 2021 with full support from the Korea Credit Guarantee Fund. These corporate bonds are planned to be refinanced at an interest rate of 4-5% using the support system of the Korea Credit Guarantee Fund in accordance with the maturity schedule.

A representative from Hanshin Engineering & Construction stated, “We expect that the issuance and repayment of these corporate bonds will further strengthen our financial soundness and market credibility,” adding, “Despite repaying 85 billion KRW of corporate bonds with our own funds, we still hold cash equivalents in the 300 billion KRW range, and with the reduction of liabilities, the debt ratio will decrease, leading to an improvement in our financial structure.”

원본보기 아이콘

© The Asia Business Daily(www.asiae.co.kr). All rights reserved.