Tongyeong Eco Power, Corporate Bond Demand Forecast 492 Billion Won Orders... 'Twice the Target'

[Financial News] HDC Group announced on the 18th that Tongyeong Eco Power received orders totaling 492 billion won in the corporate bond demand forecast conducted for the first time since the start of commercial operation of the natural gas combined cycle power plant.
Tongyeong Eco Power is an affiliate of HDC Group and is the first combined cycle power plant in Korea with its own LNG storage facilities. HDC holds a 60.5% stake, Hanwha Energy holds 26.5%, and Hanwha holds 13%.
This demand forecast was conducted with a recruitment size of 198 billion won for 3-year bonds, receiving orders totaling 492 billion won, exceeding the target amount compared to the private bond rating agency's interest rate of -9bp. The final interest rate was formed at a competitive level compared to companies with the same credit rating, and it was decided not to issue additional bonds.
The corporate bond issuance is scheduled for the 28th of this month. The lead managers are Korea Investment & Securities, KB Securities, NH Investment & Securities, Hana Securities, Woori Investment & Securities, and the underwriters are Shin Young Securities, Kiwoom Securities, and Eugene Investment & Securities, consisting of a total of 8 securities firms.
All funds raised through this corporate bond will be used for debt repayment. As the mid- to long-term facility investment plan is not large, the company plans to continue improving financial soundness centered on cash flow without additional financial burden.
Since the start of commercial operation of the 1012MW natural gas combined cycle power plant in October 2024, Tongyeong Eco Power has been maintaining stable business performance. Sales in the fourth quarter of 2024 were 212.4 billion won, with an operating profit margin of 26.8%, and sales in the first quarter of 2025 were 208.1 billion won, with an operating profit margin of 27.9%.
As an example of assessing profitability indicators, EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization)/Total Assets maintained around 20%. Korea Ratings and Korea Credit Rating assessed Tongyeong Eco Power's credit rating as A+, stating "It has excellent profit-generating ability and a stable business structure."
A representative of Tongyeong Eco Power said, "We were able to secure investors' trust based on stable performance from the early stages of commercial operation," and "We will further strengthen financial stability and the foundation for capital management through this corporate bond issuance."







going@fnnews.com Choi Ga-young Reporter