이 기사는 2022년 02월 22일 07:38 thebell 에 표출된 기사입니다.

Lotte Corp, the holding company of South Korean retail giant Lotte Group, has attracted strong demand from investors in its bookbuilding process resumed one month after it postponed its bond sale plan after being named as a preferred bidder for Ministop Korea.

Lotte Corp launched its bookbuilding session on Thursday to issue 250 billion won ($200 million) in bonds and received bids totaling 550 billion won. Thanks to the strong demand, the company may increase the offering to up to 500 billion won. The bonds will be sold on February 25.

The offering included 150 billion won of 3-year bonds, 70 billion won of 5-year bonds and 30 billion won of 10-year bonds. The 3-year bonds drew bids worth 430 billion won, the 5-year bonds attracted 70 billion won and the 10-year bonds attracted 50 billion won.

Only a month ago, Lotte Corp proposed yields ranging from minus 20 to plus 20 basis points (bps) of average yields evaluated by local credit rating agencies for the 3-year and 5-year bonds and proposed yields ranging from minus 30 to plus 30bps for the 10-year bond.

The company, however, has adjusted yields ranging from minus 30 to plus 30bps of average yields for all bonds, considering that many of issuers have all been met with tepid demand recently.

Interest rates have soared in just one year. Yields for bonds with 3-year, 5-year and 10-year maturities were 1.264%, 1.639% and 2.325% respectively in January 2021.

Lotte Corp’s average market yields were 2.933% for its 3-year bond, 2.977% for the 5-year bond and 3.385% for the 10-year bond on Wednesday. The yields of the bonds with 3-year and 5-year maturities were 34bps and 22bps higher compared to other bonds with the same credit rating and maturities.

Lotte Corp’s 150 billion won 3-year bond will likely be sold at a yield of 3.08%, or 22 bps above the average yield and the 70 billion 5-year bond at 3.197%, or 22bps above the average yield. The 30 billion won 10-year bond will likely be sold at 3.552%, or 8bps above the average yield. Yields will rise if the company decides to increase the size of the offering.

Samsung Securities, Shinhan Investment, Kiwoom Securities, Korea Investment & Securities and KB Securities are managing the deal. (Reporting by Chan-mi Oh)