According to sources from the investment banking industry on Wednesday, Hyundai Steel plans to structure the new offering in three tranches - in maturities of three, five and seven years - on August 30 after holding a book building session on August 23. KB Securities, NH Investment & Securities and Mirae Asset Daewoo are joint bookrunners.
The offering could up be upped to 500 billion if it finds demand stronger than expected, according to sources.
The nation’s credit rating agencies give the firm the same AA rating, the third highest, with a stable outlook, as it boasts a stable business outlook based on diversified product portfolio. It has also maintained its debt ratio below 100 percent since 2016. As of the end of March this year, it raked in 293.5 billion won in operating profit.
Early this year, the company doubled its offering from 300 billion won to 600 billion won thanks to a fat order book of more than 1 trillion won. Proceeds will be first used to refinance maturing debt.
On Thursday, shares of Hyundai Steel fell 3.85 percent to finish at 52,400 won.
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