이 누리집은 대한민국 공식 전자정부 누리집입니다.
Biz News Korea(Eng)
Hanjin Transportation to push with higher-yield debt despite poor outlook
- Collected
- 2016.10.28
- Distributed
- 2016.10.31
- Source
- Go Direct
The company reported to the financial authority its plan to issue 35 billion won ($30.64 million) in one-year papers. It is proposing premium of up to 20 basis points over the company’s average bond yield evaluated by four private bond pricing companies, reflecting the downturn of the local bond market and the risk of Hanjin Group.
Korea Investors Service on Tuesday announced it was revising down the debt rating for Hanjin from A- to BBB+ with a negative outlook, warning of further downgrade below the investment grade citing the company’s strained balance sheet after it was forced acquire assets of Hanjin Shipping and deteriorating business conditions of new port operations.
Still, the company must draw new debt for refinancing 90 billion won due on Nov. 7 and another 40 billion won in March of next year. Hanjn said it will use the entire proceeds from the debt sale to repay the maturing debt and any shortfall will be covered by its own cash reserve and bank loans.
Meanwhile, concerns are growing whether the company can sell the debt successfully in the lackluster corporate bond market as even investment-grade companies including Pulmuone, Hubis and Hyundai Rotem have been shunned. Another Hanjin Group affiliate Korean Air Co. conducted book building to sell 150 billion won worth of corporate bonds on Oct. 17 but failed to draw a single bid from institutional investors.
By Park Yun-gu
[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]