Hana F&I secured ₩687 billion ($468.9 million) in buy orders for its corporate bond issuance — 4.6 times its ₩150 billion target. The 3-year tranche alone drew ₩505 billion, exceeding its ₩50 billion goal by tenfold and pricing at −12 bps versus market average. Joint lead underwriters included Korea Investment & Securities, NH Investment & Securities, KB Securities, and Shinhan Investment Securities. Proceeds will refinance ₩70 billion in commercial paper and ₩30 billion in electronic short-term bonds maturing in August–September. With an A+, Stable rating from Korea Ratings, Korea Investors Service, and NICE Investors Service, the firm posted ₩10.1 billion ($6.9 million) in Q1 net profit.
According to finance.biggo.com, Hana F&I secured buy orders totaling ₩687 billion (approximately $468.9 million) in its corporate bond demand forecast — nearly 4.6 times its initial target of ₩150 billion (approximately $102.4 million). The issuance marks the company’s second public corporate bond demand forecast of 2024.
Explosive demand for 3-year tranche
The 3-year tranche attracted ₩505 billion (approximately $344.7 million), more than ten times its ₩50 billion target — accounting for over 70% of total orders. This tranche was priced at −12 basis points versus the market average, reflecting strong investor confidence despite Hana F&I’s A+ non-investment-grade rating.
The 1.5-year tranche drew ₩90 billion against a ₩30 billion target, while the 2-year tranche attracted ₩92 billion against a ₩70 billion target. Interest rates were set at −1 bp versus the market average for both the 1.5-year and 2-year tranches.
Underwriters and credit ratings
Korea Investment & Securities, NH Investment & Securities, KB Securities, and Shinhan Investment Securities served as joint lead underwriters. South Korea’s three major credit rating agencies — Korea Ratings, Korea Investors Service, and NICE Investors Service — all assign Hana F&I an A+, Stable rating. Though classified as non-investment-grade, the company’s consistent performance in South Korea’s non-performing loan (NPL) market underpinned investor interest.
Hana F&I reported consolidated net profit of approximately ₩10.1 billion (approximately $6.9 million) in the first quarter of this year — a key factor cited by institutional investors in their allocation decisions.
Funding use and potential expansion
Proceeds will primarily refinance maturing debt: ₩70 billion in commercial paper and ₩30 billion in electronic short-term bonds scheduled to mature in August and September of this year. Additional funds, if the issuance is increased, will be allocated to working capital.
The company is now considering expanding the total issuance size to as much as ₩300 billion (approximately $204.8 million). This would represent a doubling of the original target and reflects robust market reception across all tranches.
Initial pricing guidance had ranged from −30 bp to +30 bp relative to private bond valuation benchmarks — yet final pricing landed significantly tighter, underscoring disciplined demand and favorable market positioning.
Source: finance.biggo.com
Compiled from international media by the SCI.AI editorial team.
