NAVER said on the 15th that it succeeded in issuing euro-denominated bonds for the first time since its founding. With the simultaneous issuance in dollars and euros, the company raised global funds of about 1.6 trillion won. NAVER plans to use this issuance to expand its base of European investors and strengthen its presence in global capital markets.
NAVER said it succeeded in issuing global green bonds, issued simultaneously in dollars and euros, on the day. It is NAVER's first euro-denominated bond and its first dollar-denominated bond in about five years since 2021.
The global green bonds consist of two tranches: a dollar bond and a euro bond. The dollar bond was issued at $500 million with a five-year maturity, and the euro bond at €500 million with a seven-year maturity. The total size is $1.1 billion (about 1.6212 trillion won).
It is the first case in about six years since 2020 that a domestic private corporation has issued dollar- and euro-denominated bonds simultaneously. According to the company, the seven-year euro tranche is the first among domestic private corporations.
NAVER expects this issuance to serve as an important opportunity to broaden the base of euro funding for domestic corporations to longer maturities.
NAVER secured investor orders exceeding $10 billion from a total of 437 global investors, including green-focused asset managers, large global asset managers, commercial banks, and pension funds. That is 9.3 times the final issuance size.
The coupon was set at 4.375% for the five-year dollar tranche, equal to U.S. Treasury yield (T) + 60 basis points (bps), and 3.750% for the seven-year euro tranche, equal to euro mid-swap (MS) + 93 bps.
According to the underwriters, the new-issue premium typically required for a new deal formed at a negative level, achieving a so-called "reverse premium." As a result, the dollar bond recorded the lowest-ever five-year new-issue spread among domestic private corporations.
NAVER plans to use the proceeds from the issuance for eco-friendly projects such as green data centers and energy efficiency improvements. Over the long term, it will broaden touchpoints with European investors and strengthen its position in the euro market.