[E-Daily Marketin KIM YEON-SEO Reporter] CHONGKUNDANG HOLDINGS CORP. secured orders exceeding three times its target amount during the bookbuilding process for its public corporate bond offering.

According to the investment banking (IB) industry on the 24th, CHONGKUNDANG HOLDINGS CORP. (A+) received a total of 213 billion won in purchase orders during its corporate bond bookbuilding, which was conducted with a target of 60 billion won. By tranche (maturity), orders totaling 118 billion won were received for the 2-year tranche (30 billion won target), and 95 billion won for the 3-year tranche (30 billion won target).

CHONGKUNDANG HOLDINGS CORP. set its target interest rate band for the public offering at -30 to +30 basis points (bps; 1 bp = 0.01 percentage point) relative to the rating-based private bond market average (Minpyeong) assessment rate. Based on the bookbuilding results, the 2-year tranche was fully subscribed at -3 bps relative to the Minpyeong rate, and the 3-year tranche at -4 bps. The company plans to finalize the issuance terms based on these results.

CHONGKUNDANG HOLDINGS CORP. plans to use the funds raised from this corporate bond issuance to repay debt, finance the holding company’s operations, and acquire securities of other companies.

In its securities registration statement, the company stated, “Of the total 60 billion won raised through the issuance of the 4th-1 and 4th-2 unsecured corporate bonds, 30 billion won will be used for debt repayment, 15 billion won for working capital, and the remaining 15 billion won for the acquisition of securities in other companies.”