[Edaily Marketin Reporter KIM YEON-SEO ] SAMYANG PACKAGING (A-) met its fundraising target after receiving orders amounting to 1.5 times the target amount during the bookbuilding process for its public corporate bond offering. However, the financing burden increased somewhat as the company raised the funds at an interest rate higher than the average market rate for similar issues.

According to the investment banking (IB) industry on the 28th, SAMYANG PACKAGING received a total of 90 billion won in orders during the bookbuilding process for its 2-year corporate bonds, which had a target amount of 60 billion won.

SAMYANG PACKAGING had set its target yield range at –30 basis points (bps; 1 bp = 0.01 percentage points) to +30 bps relative to the rates assessed by individual private bond rating agencies, and successfully met its target at +12 bps.

Based on the results of the bookbuilding, SAMYANG PACKAGING plans to consider increasing the issuance amount to up to 100 billion won. NH INVESTMENT & SECURITIES and KB Securities served as the lead underwriters.

The proceeds will be used to refinance existing corporate bonds. SAMYANG PACKAGING plans to repay 60 billion won in unsecured bonds that mature on the issuance date, the 4th of next month. The additional proceeds from the increased issuance will be used for debt repayment and working capital.