This article was published on the ChosunBiz MoneyMove site at 2:17 p.m. on Sept. 8, 2025.
Binggrae, which produces dairy products and ice cream, is returning to the public corporate bond market for the first time in 23 years. To manage its external creditworthiness, Binggrae has received corporate credit rating (ICR) evaluations from domestic credit rating agencies over the years, but it has not issued corporate bonds since 2002.
According to investment banking (IB) industry sources on the 8th, Binggrae plans to issue 50 billion won worth of three-year corporate bonds on the 26th after conducting demand forecasting this month. Depending on the demand forecasting results, it plans to issue up to an additional 100 billion won.
Binggrae's need for fundraising has increased recently after completing the payment for the land acquisition for a new factory site. It spent 87 billion won to acquire land and buildings within the Cheonan industrial complex in South Chungcheong Province. Binggrae plans to establish a new factory on this site for production and is also considering consolidating factory functions scattered in Namyangju, Gwangju, and Gimhae.
This marks Binggrae's first public corporate bond issuance in 23 years. Binggrae issued 10 billion won worth of corporate bonds in 2002. A representative of Binggrae noted, "We are pursuing corporate bond issuance for the purpose of repaying existing borrowing funds and utilizing working capital."
Binggrae has maintained a low liability ratio for a long time. At the end of last year, the liability ratio was 39%. When Kim Ho-yeon became chairman of Binggrae in 1992, the liability ratio reached 4183%. This was the aftermath of aggressive business diversification undertaken before separating from Hanwha Group. Since then, Kim has adopted a conservative investment strategy, focusing on enhancing financial soundness through cash asset expansion and management of retained earnings.
Binggrae started as Daeil Dairy Co. in 1967. It launched banana-flavored milk in 1974, achieving great success. The company changed its name to Binggrae in 1982. In 2020, it acquired Haitai Ice Cream for 140 billion won, expanding its size. Last year, its sales and operating profit were 1.463 trillion won and 131.3 billion won, respectively. The market capitalization as of that day is approximately 680 billion won.