LG Uplus to Issue Up to KRW 400 Billion in Corporate Bonds, Returns to Public Market After Eight Months [fn Market Watch]

[Financial News] LG Uplus will issue up to KRW 400 billion in corporate bonds in the public market next month. It will be returning to the public bond market about eight months after raising KRW 500 billion early this year.
According to investment banking (IB) industry sources on the 23rd, LG Uplus plans to conduct a demand forecast around the 13th of next month for corporate bonds totaling KRW 200 billion with maturities of two, three and five years. If it secures sufficient orders through the demand forecast, the company plans to increase the issuance to as much as KRW 400 billion.
The pricing band is expected to range from 30 basis points below to 30 basis points above the individual average market yield for each maturity. This will be LG Uplus's first corporate bond issuance in about eight months since it raised KRW 500 billion on January 28. Given that approximately KRW 130 billion in the company's corporate bonds will mature in November this year, the proceeds are expected to be used to refinance existing debt and fund operations.
LG Uplus has an AA+ credit rating.
Yoo Young Bin, a researcher at Korea Investors Service (KIS), said, "With most of the 5G network rollout now complete, LG Uplus's capital expenditure (CAPEX) burden has eased," adding, "The company is also expected to reduce its debt burden while meeting shareholder-return needs and investing in non-telecommunications businesses such as data centers, supported by improved operating cash generation."
However, funding needs arising from the future expansion of non-telecommunications businesses such as data centers and shareholder returns remain a variable. KIS has identified fluctuations in funding requirements and debt burdens stemming from investment in non-telecommunications businesses and shareholder returns as key monitoring factors.

[email protected] Kim Hyun-jung Reporter