LG Uplus (credit rating AA) secured more than 3 trillion won in a corporate bond demand forecast. This means that the demand exceeded the offering amount by more than 10 times.
According to financial investment industry sources on the 10th, LG Uplus aimed to raise 300 billion won and received buy orders totaling 3.05 trillion won. There were 1.57 trillion won in orders for 1.5 trillion won in 3-year bonds, 1.08 trillion won for 1 trillion won in 5-year bonds, and 400 billion won in 7-year bonds.
LG Uplus suggested interest rates of -30 to +30 basis points (1 basis point = 0.01 percentage points) compared to individual market average rates, achieving -12 basis points for 3-year bonds, -8 basis points for 5-year bonds, and -15 basis points for 7-year bonds. This indicates that there were many investors willing to purchase at prices higher than those evaluated in the market.
Following the successful demand forecast, LG Uplus is said to be considering increasing the corporate bond issuance to a maximum of 600 billion won. LG Uplus plans to use the funds raised from the bond issuance to repay 480 billion won worth of existing public bonds maturing at the end of January.
The bond issuance is scheduled for the 20th. The lead underwriters are five major firms: KB Securities, NH Investment & Securities, Mirae Asset Securities, Korea Investment & Securities, and Shinhan Investment Corp. Daishin Securities, Hana Securities, LS Securities, and IM Securities will participate as co-underwriters. These nine securities firms will also handle the underwriting work.