[Edaily Marketin Reporter KIM YEON-SEO ] KCC Corporation (AA-) achieved a successful public offering of corporate bonds, receiving orders amounting to approximately seven times the target amount during the bookbuilding process. LOTTE CHEMICAL CORPORATION, which also conducted its bookbuilding on the same day, secured demand exceeding its target amount backed by bank guarantees.

According to the investment banking (IB) industry on the 23rd, KCC Corporation received 1.385 trillion won in orders during its bookbuilding for a public corporate bond offering targeting institutional investors, which had a total target of 200 billion won.

By tranche (maturity), orders totaling 695 billion won were received for the 2-year tranche (80 billion won target), and 700 billion won for the 3-year tranche (120 billion won target).

KCC Corporation set its target yield range at –30 basis points (bps; 1 bp = 0.01 percentage point) to +30 bps relative to the ratings from individual private bond rating agencies. The 2-year tranche met its target at –5 bps relative to the individual private ratings, and the 3-year tranche met its target at –4 bps.

The lead underwriters for this corporate bond issuance were NH INVESTMENT & SECURITIES, KB Securities, Korea Investment & Securities, Shinhan Investment & Securities, MIRAE ASSET SECURITIES, and KIWOOM Securities.

KCC Corporation plans to use the entire amount raised to repay short-term bonds and commercial paper (CP) maturing in August and September.

On the same day, LOTTE CHEMICAL CORPORATION secured 310 billion won in orders during a bookbuilding process for a 3-year bank-guaranteed corporate bond with a target of 200 billion won.

LOTTE CHEMICAL CORPORATION set its target yield range at –40 basis points to +40 basis points relative to the market average yield for 3-year AAA-rated bank bonds and filled the offering at a level 35 basis points (1 bp = 0.01 percentage point) above that range. Kookmin, Shinhan, Hana, and Woori Banks guaranteed the payment of principal and interest.

The lead underwriters are KIWOOM Securities, KB Securities, NH INVESTMENT & SECURITIES, Korea Investment & Securities, Shinhan Investment & Securities, SamsungSecurities, Hana Securities, and Woori Investment & Securities.