Hanwha Aerospace(012450) said on the 21st that it issued overseas public offering bonds. The amount is $500 million, or about 741.0 billion won. This is the first time a domestic defense company has issued overseas public offering bonds.
Hanwha Aerospace conducted book building for a U.S. dollar bond issuance in regions including Europe and Asia and finalized a $500 million fundraising. The book building drew $3.3 billion, about seven times the issuance amount. The company plans to use the funds for operations and repayment of borrowing fund.
Hanwha Aerospace said this follows last month's achievement of obtaining an A- credit rating from global rating agency S&P, the first among domestic defense companies.
The overseas bonds issued by Hanwha Aerospace are three-year fixed-rate notes (FXD). The coupon is set at the yield on U.S. Government Bonds of the same maturity plus a spread of 83 bp (1 bp = 0.01 percentage point). That is 32 bp tighter than the initial price guidance (IPG).
A Hanwha Aerospace official said, "The successful completion of our first overseas public offering bond issuance reflects foreign investors' high assessment of Hanwha Aerospace's growth potential and financial soundness," adding, "Based on stable funding capabilities, we will further strengthen our competitiveness."