GS Retail bond sale oversubscribed amid outlook upgrade The offering almost four times oversubscribed
Translated by Kim So-in 공개 2022-04-29 08:05:18
이 기사는 2022년 04월 29일 08:04 thebell 에 표출된 기사입니다.
South Korea’s retail giant GS Retail has garnered strong investor demand in its bond sale.The offering attracted 850 billion won ($668 million) in orders during bookbuilding on Tuesday, meaning the deal was almost four times oversubscribed, according to sources.
The South Korean issuer’s two tranches of notes with 3-year and 5-year maturities received orders worth 600 billion won and 250 billion won, respectively, compared to its original targets of 150 billion won and 50 billion won.
Asset managers, securities firms, insurance companies, banks and pension funds participated in the bookbuilding.
The 3-year note was priced 1bp over the average yield calculated by major local credit rating agencies and the 5-year note was priced on par with the average yield.
According to Korea Asset Pricing, GS Retail’s 3-year and 5-year notes had their average yields about 7bp below the average yields of bonds with the same credit rating and maturities as of Monday. Final prices are expected to be priced below the average yields.
The timing of bookbuilding was considered appropriate as the government bond yields have hovered around 3%.
“Emart and Hotel Shilla’s bookbuildings earlier this year saw positive demand,” an industry source said. “Investor sentiment may be becoming stable.”
The successful bookbuilding was also attributable to an upgrade in the company’s outlook. Local credit rating agency Korea Ratings upgraded GS Retail’s outlook to positive at the end of last year. NICE Investors Service and Korea Investors Service have maintained their stable outlook for the company.
GS Retail will issue the 5-year note in the form of ESG (environment, social and governance) bond. Its 5-year social bond received the highest possible S1 rating from Korea Ratings.
The proceeds from the bond sale, which will be completed on May 4, will be used to support small and medium-sized business partners and convenience store franchisees. Shinhan Financial Investment, Samsung Securities, Korea Investment & Securities, KB Securities and NH Investment & Securities are joint bookrunners. (Reporting by Ji-hye Lee)
< 저작권자 ⓒ 자본시장 미디어 'thebell', 무단 전재, 재배포 및 AI학습 이용 금지 >
관련기사
best clicks
최신뉴스 in 전체기사
-
- 우리금융 "롯데손보 M&A, 과도한 가격 부담 안한다"
- 신한캐피탈, 지속성장 포트폴리오 리밸런싱 체계 강화
- 하나금융, ELS 악재에도 실적 선방…확고한 수익 기반
- 하나금융, 자본비율 하락에도 주주환원 강화 의지
- 국민연금, '역대 최대 1.5조' 출자사업 닻 올렸다
- [도전 직면한 하이브 멀티레이블]하이브, 강한 자율성 보장 '양날의 검' 됐나
- [퍼포먼스&스톡]꺾여버린 기세에…포스코홀딩스, '자사주 소각' 카드 재소환
- [퍼포먼스&스톡]LG엔솔 예견된 실적·주가 하락, 비용 절감 '집중'
- [퍼포먼스&스톡]포스코인터, 컨센서스 웃돌았지만 주가는 '주춤'
- 신한금융, ‘리딩금융’ 재탈환에 주주환원 강화 자신감