Dongwon F&B announced on the 18th that it will issue corporate bonds worth a total of 120 billion won. This will consist of 70 billion won in 2-year bonds and 50 billion won in 3-year bonds.
According to Dongwon F&B, more than 730 billion won, which is 12 times the target amount, flooded in during the demand forecast held on the 13th. As a result, it was decided to double the initial issuance amount from 60 billion won.
As investment demand surged, the issuance interest rate also decreased. The 2-year bond dropped by 15 basis points (1 basis point = 0.01 percentage point) compared to the private bond evaluation rate, while the 3-year bond was filled at a level 30 basis points lower than the target.
Dongwon F&B believes that the success of this corporate bond issuance reflects the company's solid market dominance in the food business, stable financial structure, and optimistic export expectations. Dongwon F&B's revenue for the first half of this year is 2.35 trillion won, an increase of 7.8% compared to the same period last year. During the same period, the operating profit was 88.8 billion won, which represents a 12.7% increase compared to the previous year.
The credit rating is also stable. Dongwon F&B has received a corporate bond credit rating of 'A+ (stable)' from Korea Ratings and NICE Investors Service.
Dongwon F&B plans to use the funds raised this time for repayment of existing corporate bonds, among other purposes. A representative from Dongwon F&B said, "We have successfully raised large-scale funds based on the solid market dominance and financial stability of our core business." He added, "As we have laid the groundwork for expanding our overseas business through business reorganization, we will increase exports through local customized product development and marketing."