GS Entec Returns to the Public Bond Market After Two Months, Raises KRW 60 Billion Backed by GS GLOBAL Guarantee [fn Market Watch]

[Financial News] GS Entec is returning to the public corporate bond market after two months, backed by a payment guarantee from its largest shareholder, GS GLOBAL. This is an additional fundraising effort following the issuance of KRW 35 billion worth of guaranteed bonds last July.
According to the financial investment industry on the 3rd, GS Entec will conduct a demand forecast on the 29th for the issuance of corporate bonds worth a total of KRW 60 billion. The scheduled issuance date is the 7th of next month.
The bonds are scheduled to be issued with maturities divided into two-year and three-year terms. KB Securities, Korea Investment & Securities, Mirae Asset Securities, Daishin Securities, and Shinhan Securities are serving as lead underwriters. The target interest rate band is expected to be set at -30bp to +30bp relative to the individual market yield.
This corporate bond is also structured to be guaranteed by GS GLOBAL. GS Entec has been raising funds in the public bond market by utilizing GS GLOBAL's guarantees. Accordingly, the credit rating of this bond is expected to be assessed at the 'A0' level, based on the creditworthiness of the guarantor, GS GLOBAL.
A payment-guaranteed bond is a bond in which the guarantor assumes responsibility for repayment if the issuer fails to repay the principal and interest. From an investor's perspective, the creditworthiness of not only the issuer, GS Entec, but also GS GLOBAL, which provides the payment guarantee, becomes a key factor in investment decisions.
The predecessor of GS Entec is DaekyungOEKE, established in 1988. It operates an energy equipment business, including the manufacturing and sale of offshore wind power substructures, as well as chemical equipment and heat recovery systems for oil, gas, and petrochemical plants. It was incorporated into the GS Group in December 2010. As of the end of March this year, GS GLOBAL was the largest shareholder, holding a 73.7% stake.

[email protected] Kim Hyun-jung Reporter