HDC Hyundai Engineering Plastics scraps bond issuance plan HDC Group’s affiliate postpones the process indefinitely after Gwangju building collapse
Translated by Kim So-in 공개 2022-01-21 08:19:21
이 기사는 2022년 01월 21일 08:06 thebell 에 표출된 기사입니다.
HDC Group’s affiliate HDC Hyundai Engineering Plastics (HDC Hyundai EP) has scrapped its plan to sell its environmental, social, and governance (ESG) bond due to frozen investor sentiment after fatal accidents at HDC Hyundai Development Company’s construction sites in Gwangju.HDC Hyundai EP, which planned to launch a bookbuilding process on Thursday, has decided to postpone the bond issuance indefinitely amid negative investor sentiment, investment banking sources said on Wednesday.
The decision has been made as the aftermath of a fatal collapse of an apartment building in Hwajung-dong in Gwangju occurred on January 11 gets more serious.
HDC Hyundai EP, which manufactures chemical, rubber, and plastic products, has no relevancy to the construction industry, but the company has believed it is better to postpone its bond sale as HDC Group is being severely damaged after the recent accident.
Asset management firms are hesitant to purchase bonds issued by HDC Group’s affiliates due to a possibility of a credit rating downgrade.
HDC Hyundai EP initially planned to raise 30 billion won ($25 million) in a 3-year bond issuance. KB Securities was selected as a lead bookrunner, with NH Investment & Securities participating in an underwriting syndicate.
The company planned to sell the bond in the form of ESG bond, with an aim to use the proceeds to invest in superplastic production through partnerships with the nation’s conlomerates SK Group and CJ Group.
HDC Hyundai EP agreed to take over polyphenylene sulfide business from SK Chemicals for 38.5 billion won, along with SK Chemicals’ production line in the southern city of Ulsan. It also signed an agreement to establish a joint venture with CJ Cheiljedang, aiming to complete a production plant in Indonesia exclusively for marine biodegradable plastic and start mass production.
HDC Group’s affiliates have been seriously affected by HDC Hyundai Development Company’s damaged public image after the building collapse. HDC Holdings, the group's holding company, owns 48.3% of HDC Hyundai EP, 95.2% of HDC I&Cons, and 40% of HDC Hyundai Development Company. (Reporting by Chan-mi Oh)
< 저작권자 ⓒ 자본시장 미디어 'thebell', 무단 전재, 재배포 및 AI학습 이용 금지 >
관련기사
best clicks
최신뉴스 in 전체기사
-
- '재무개선' AJ네트웍스, 조달비용 '확' 낮췄다
- '9년만에 엑시트' 한앤코, 한온시스템 거래구조 살펴보니
- 한국타이어앤테크놀로지, 한온시스템 인수한다
- [수술대 오른 커넥트웨이브]2대주주 지분매입 나선 MBK, 주식교환 카드 꺼냈다
- [이사회 모니터]이재용 에이비프로바이오 대표, 바이오·반도체 신사업 '드라이브'
- 와이투솔루션, 주인 바뀌어도 '신약' 중심엔 美 합작사 '룩사'
- 아이티센, 부산디지털자산거래소 본격 출범
- 아이에스시, AI·데이터센터 수주 증가에 '날개'
- [이사회 모니터]서정학 IBK증권 대표, ESG위원회도 참여 '영향력 확대'
- SW클라우드 '10주년' 폴라리스오피스, “초격차 밸류업”