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Biz News Korea(Eng)
Korean companies up pipeline in the debt market borrowing costs go up
- Collected
- 2017.01.07
- Distributed
- 2017.01.09
- Source
- Go Direct
AA+ rated superstore chain operator E-Mart is set to auction off new issues worth 430 billion won ($360 million) next Tuesday. The retailer upped the pipeline scale from 300 billion won upon overwhelming demand in book-building.
On Jan. 23, Lotte Shopping (AA+) will issue bonds worth 250 billion won to fund working capital. On the following day, Hyundai Steel (AA) and Paradise (AA-) plans issues worth 300 billion won and 100 billion won, respectively. LG Uplus (AA) is readying 300 billion won issue on Jan. 25, making a comeback to the local bond market after a one-year hiatus.
The government said it will reactivate a stabilization bond fund and have state lenders purchase under-subscribed bonds to aid the corporate sector amid rising yields from developments in the United States - the triumph of unconventional candidate Donald Trump in the presidential election and rate hike in December and suggestion of faster increases throughout this year - on top of domestic political unrest following the impeachment of scandal-ridden president.
This has helped to encourage higher-yield debt issuers to venture into the debt market. Hansol Chemical (A-) hopes to market 50 billion won debt on Jan. 17 and CJ Hello Vision (A+) 100 billion won on Jan. 20. BBB-rated Halla also would venture 50 billion won debt this month for the first time in nearly four years.
By Park Yoon-gu
[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]