Hyundai E&C gathered over 1 trillion won, more than five times its initial goal, in the bond public offering demand forecast.
Hyundai E&C announced on the 29th that following a demand forecast for 200 billion won in green bonds (ESG bonds) conducted on the 26th, orders amounted to 1.09 trillion won.
By maturity structure (tranche), it received 3.8 billion won for a 700 billion won 2-year issue, 5.7 billion won for a 700 billion won 3-year issue, and 1.4 billion won for a 600 billion won 5-year issue.
The desired interest rate band was offered at a level plus or minus 30 basis points compared to the individual market average (private bond evaluation company's average interest rate). All volumes filled the targeted 200 billion won with negative interest rates (2-year -11 basis points, 3-year -10 basis points, 5-year -10 basis points).
Hyundai E&C selected a total of seven companies, including KB Securities, NH Investment & Securities, Korea Investment & Securities, Kiwoom Securities, Mirae Asset Securities, Hana Securities, and DAISHIN SECURITIES, as joint lead managers for this bond issuance. Additionally, it secured Meritz Securities and Hanyang Securities as underwriters.
These bonds are scheduled to be issued on Sept. 3. Since they are green bonds, most of the raised funds will be used for eco-friendly construction projects. Some funds are also expected to be used for the LUCY solar power project in Texas, USA.
Lee Hyung-seok, Chief Financial Officer of Hyundai E&C, said, "Hyundai E&C is in the process of improving its portfolio centered on key projects in energy, including nuclear power and solar energy," adding, "Thanks to investors, we were able to issue an increased volume at competitive interest rates compared to our original plans."