Dongwon F&B Successfully Issues Bonds Worth 120 Billion Won.. Accelerating Global Business Expansion

[Financial News] Dongwon F&B has successfully attracted public offering of corporate bonds based on its firm market dominance and financial stability in its core business. This allows them to accelerate global business expansion.
Dongwon F&B announced on the 18th that it will issue corporate bonds totaling 120 billion won, consisting of 70 billion won for 2-year bonds and 50 billion won for 3-year bonds. The funds raised this time will be used for repaying existing corporate bonds.
In the demand forecast conducted on the 13th, 730 billion won, more than 12 times the recruitment amount, was gathered, increasing the bond issuance scale from 60 billion won to 120 billion won.
As investment demand surged, the issuance interest rate also decreased, with the 2-year bonds planned to be issued at -15bp (1bp=0.01%p) compared to the average private bond evaluation rate, and the 3-year bonds at -30bp.
The success of Dongwon F&B's bond issuance is analyzed to reflect the firm market dominance and stable financial structure of its food business, as well as expectations for overseas exports.
Dongwon F&B recorded sales of 2.3506 trillion won and an operating profit of 88.8 billion won in the first half of this year, driven by the expansion of overseas exports of strategic items such as pet food, tteokbokki, seasoned seaweed, and beverages, and diversification of product portfolios.
In particular, Dongwon Group plans to accelerate collaboration and exports among food affiliates centered on Dongwon F&B, and to develop pilot projects.
Pilot projects will select items with high potential for overseas market entry and operate them on a trial basis, then improve and supplement them based on local reactions and performance to expand. Through this, they plan to minimize risk and enhance execution to build a product portfolio optimized for the global market.
Additionally, Dongwon F&B plans to build a new production line overseas, three times the size of domestic ones, to expand its global pet food business. The StarKist production base in Western Samoa is being considered as a strong candidate for the expansion of the pet food dedicated production line. StarKist, in collaboration with Dongwon F&B and Dongwon Home Food, is also pursuing the development of locally specialized linked products through joint marketing.
The credit rating is stable. Dongwon F&B is rated 'A+ (Stable)' for corporate bond credit rating by Korea Ratings and NICE Investors Service.
A Dongwon F&B official said, "We successfully raised large-scale funds thanks to the solid performance of our core business, stable business portfolio, and brand competitiveness," and "As we have laid the foundation for global business expansion through business restructuring, we will increase exports through the development of locally tailored products and marketing."

ssuccu@fnnews.com Kim Seoyeon Reporter