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Biz News Korea(Eng)

Green Cross likely to up next week bond issue to 150 billion won on high demand

Collected: 2016.05.20

Distributed: 2016.05.27

Source: Go Direct

[Photo by Green Cross]

South Korea’s Green Cross Corp. buoyed by overwhelming response to its first-ever bond offering is studying to up the issue to 150 billion won from initial scale of 100 billion won ($84 million).

According to the investment banking industry on Wednesday, the pharmaceutical company drew 570 billion won for 100 billion won worth of bonds when it tapped demand with institutional investors. It attracted 410 billion won for 50 billion won worth of three-year bonds and 160 billion won for 50 billion worth of five-year debts. Encouraged by such strong appetite, the company is mulling to up issue scale to 150 billion won. Green Cross, which has not issued bonds since its foundation in 1969, plans to sell its bonds next Thursday.

Korea Ratings and Nice Investors Service Co. rated the company’s debts AA-, which is the highest credit rating among debts issued by Korean pharmaceutical companies. Its bond yield is expected to be set lower than the average yield of other corporate bonds rated at AA-.

Last year, the pharmaceutical company’s sales exceeded 1 trillion won for the first time since its foundation, standing unrivaled in the local blood derivative and vaccine markets. Sales of blood derivatives and vaccines respectively account for 39 percent and 29 percent of its entire sales, much higher than its rivals’.

The company plans to use the proceeds from the bond sale to expand its blood derivative production plant in Ochang, North Chungcheong Province and vaccine manufacturing facilities in Hwasun, South Jeolla Province.

By Kim Hye-soon

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