Hanwha Corporation is to issue public bonds to secure 70 billion won in funding, the company said Tuesday.
It filed for the plan to the Financial Supervisory Service Monday, it said. NH Investment & Securities and Hanwha Investment & Securities will underwrite the transaction, it said.
The company said it expected the issuance to go smoothly as COVID-19 pandemic had little impact on its defense business.
Hanwha secured 150 billion won in its 227th bond issuance back in January.
The two security firms underwriting the deal will begin demand forecasting on June 4. If demand is higher than the goal of 70 billion won, it will issue up to 100 billion won more bonds.
The fund secured will be used to payback debts that are expiring this month, Hanwha said
Korea Investors Service and Nice Investors Service gave the deal an A+ stable rating, citing Hanwha’s stable business structure and cash flow.
Hanwha has set the interest rate band at -30bp~+70bp, setting the top higher in light of the COVID-19 pandemic. It set January’s band at -15bp~+15bp.