NH Investment & Securities announced on the 3rd that it successfully issued $600 million (approximately 820 billion won) in euro bonds (Reg S). This issuance was conducted for the first time in about four years since 2021.
NH Investment & Securities issued $300 million each of bonds with maturities of three years and five years. An official from NH Investment & Securities noted that they were able to secure funds stably with a varied maturity structure.
The euro bonds were issued at a rate of 4.676% for the three-year bonds, which is 90 basis points (1 basis point = 0.01 percentage point) above the yield of U.S. Government Bonds (three-year), and 4.873% for the five-year bonds, which is 100 basis points above the yield of U.S. Government Bonds (five-year). Based on the initial proposed rate (IPG), demand surged with orders amounting to a maximum of $7.1 billion (approximately 9.6 trillion won) from 182 institutional investors, achieving strong demand.
Even after the final interest rate (FPG) was confirmed, orders remained at about $6.3 billion (850 billion won), reaching 10.2 times the target amount. Accordingly, NH Investment & Securities emphasized that it issued both bonds at 40 basis points lower than the initial proposed rate, under favorable conditions in the market. The funds raised this time will be used for NH Investment & Securities' general operating funds and investments in overseas business.
Yoon Byeong-woon, president of NH Investment & Securities, said, "As the foreign currency business of the securities industry continues to expand, stable foreign currency procurement is very important," and added, "We promoted the bond issuance to expand our global investor base and enhance our foreign currency procurement capabilities through this issuance of foreign currency bonds."