Parnas Hotel announced on the 21st that it will issue a total of 1 billion won, doubling its initial target of 500 billion won, thanks to the successful demand forecast for corporate bonds.
According to Parnas Hotel, after submitting the securities registration statement for the issuance of corporate bonds on the 17th, demand forecasting showed a subscription order exceeding six times the target amount, amounting to 3.41 trillion won.
Parnas Hotel secured a lower interest rate than the average interest rate of private bond evaluation companies (market average rate) for this issuance.
The 2-year bond rate is -10 basis points (1 basis point = 0.01 percentage point) compared to the market average rate for an A+ rated evaluation of corporate bonds issued by Parnas Hotel, while the 3-year bond rate is -22 basis points.
The issuance amounts to 55 billion won for 2-year bonds and 45 billion won for 3-year bonds, which will be used for debt repayment and facility investment.
Parnas Hotel explained that the reasons for the successful forecast of corporate bond demand were supported by the hotel's financial soundness and business growth potential. As of last year's provisional settlement, Parnas Hotel's dependence on borrowing funds was maintained at a reasonable level of 29.7%, showing a consistent decrease since 2021 (35.2%). The liability ratio is 107% based on the provisional settlement in 2024, which is a 27.4 percentage point decrease compared to 134.4% in 2021.
A Parnas Hotel official noted, "Due to the high subscription competition in this corporate bond demand forecast, we decided to significantly increase the issuance amount," adding, "We plan to improve the profitability of all businesses operated by Parnas Hotel, including the Westin Seoul Parnas, which will open this year, thereby solidifying our performance further."