Daehan Electric Wire, Corporate Bond Success... Issuance Scale Doubled

[Financial News] Daehan Electric Wire announced on the 12th that it will increase the corporate bond issuance scale to 155 billion won, about 2 times the initial target amount of 80 billion won.
Daehan Electric Wire explained that it secured purchase orders totaling 888 billion won, more than 11 times the target amount, through a corporate bond demand forecast via the Financial Supervisory Service's electronic disclosure on the same day, and based on this, it will expand the corporate bond issuance scale to the maximum issuance limit of 115 billion won. 
For the 2-year maturity recruitment of 30 billion won, 311 billion won was gathered, and for the 3-year maturity recruitment of 50 billion won, 577 billion won was gathered.
Thanks to the success, the issuance interest rate also decreased. Compared to the average interest rate of bonds with the same credit rating, the 2-year maturity bond decreased by minus (-) 35bp (0.35%)
and the 3-year maturity bond decreased by -55bp (0.55%). Daehan Electric Wire plans to use 30 billion won of the funds raised this time to repay loans and 125 billion won for operating funds.
Daehan Electric Wire interpreted that the market is positively evaluating its performance improvement and business competitiveness. Daehan Electric Wire recorded sales of 1.7718 trillion won in the first half of this year, achieving the highest performance ever, an increase of 7.2% compared to the same period last year. The order backlog also reached a record high of 3.25 trillion won as of the end of August. This is about 3.5 times the size compared to 945.5 billion won at the end of 2020, just before being acquired by Hoban Group. The global power infrastructure market is expected to continue growing due to the expansion of AI and the demand for carbon neutrality. Daehan Electric Wire is expanding related investments, such as building a high-voltage direct current (HVDC) submarine cable production plant.
A representative from Daehan Electric Wire stated, "Considering the high investment demand, we have expanded the corporate bond issuance scale to virtually the maximum scale," and added, "We will further solidify our position as a leading company in the global power infrastructure market by enhancing corporate value, strengthening financial soundness, and increasing the competitiveness of ongoing projects."

ehcho@fnnews.com Cho Eunhyo Reporter