Paradise Attracts 700 Billion Won in Corporate Bond Demand Forecast, "12 Times the Offering Amount"

Paradise Group announced on October 15 that it had received purchase orders totaling 705 billion won during the book-building process for its corporate bond public offering held on October 14.

This amount is approximately 12 times the originally planned offering of 60 billion won. The demand forecast attracted 355 billion won for the two-year bonds and 350 billion won for the three-year bonds, respectively. The additional interest rates were set at -23 basis points (bp; 1bp = 0.01%) for the two-year bonds and -41 bp for the three-year bonds, based on the average market interest rate for the respective ratings. Paradise analyzed that the successful under-issuance in the demand forecast reflects the market's recognition of the company's financial stability and growth potential.

Paradise City Casino. Courtesy of Paradise

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The final amount of the corporate bond issuance was set at 100 billion won. Of this, Paradise plans to use 80 billion won to refinance existing loans and 20 billion won to invest in IT infrastructure and related areas. The company aims not only to reduce interest expenses but also to accelerate its digital transformation.

Paradise had previously failed to issue public bonds in 2020, when the COVID-19 pandemic began, but has now achieved a positive result after five years. In the first half of this year, Paradise recorded sales of 567.8 billion won, a 5.5% increase compared to the same period last year, and its net profit rose 38.3% to 75.5 billion won.

A Paradise representative stated, "The successful rebound in performance after COVID-19, along with our transformation into an integrated resort industry and efforts to adopt ESG (Environmental, Social, and Governance) management, have increased the market's trust in the company."

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