[Edaily Marketin KIM YEON-SEO Reporter] As the September corporate bond refinancing season gets into full swing, companies are conducting a series of book-building processes for public bond offerings. Securities firms and financial holding companies are expected to continue raising funds and bolstering their capital.

According to the investment banking (IB) industry on the 30th, this week (August 31–September 4), Woori Financial F&I (F&I·A0), Daishin Securities (AA-), Hana Securities (AA0), Coway (AA-), DB Securities (A+), and Lotte Auto Lease (A+) will conduct demand forecasts for corporate bonds targeting institutional investors. JB Financial Group (A+), iM Financial Group (AA-), and Shinhan Financial Group (AA-) will issue hybrid capital securities.

Woori Financial F&I will conduct a bookbuilding on September 1, targeting a total of 150 billion won, including 20 billion won in 1.5-year bonds, 70 billion won in 2-year bonds, and 60 billion won in 3-year bonds. The company has left open the possibility of increasing the offering size to up to 250 billion won.

Daishin Securities, which holds an ‘AA-’ credit rating, will also seek to raise a total of 150 billion won on the same day. The offering is structured into tranches (maturities) consisting of 70 billion won in 2-year notes and 80 billion won in 3-year notes. Depending on the results of the bookbuilding, the company plans to increase the offering size to a maximum of 300 billion won.

On September 2, Hana Securities, Coway, and DB Securities will conduct bookbuilding. Hana Securities aims to raise a total of 300 billion won—150 billion won each in 2-year and 3-year tranches—with the possibility of increasing the amount to a maximum of 500 billion won.

Coway aims to raise a total of 200 billion won, including 60 billion won in 2-year bonds, 110 billion won in 3-year bonds, and 30 billion won in 5-year bonds. The maximum issuance amount is 400 billion won.

DB Securities is raising a total of 150 billion won, including 70 billion won in 1.5-year bonds and 80 billion won in 3-year bonds. It plans to increase the amount to a maximum of 200 billion won.

Lotte Auto Lease, backed by a payment guarantee from Lotte Rental, will conduct a book-building process for its 1.5-year and 2-year bonds on September 3. The target yield band is –40 basis points (bps; 1 bp = 0.01 percentage point) to +40 bps relative to the individual market average yield.

Financial holding companies are moving to bolster their capital through hybrid capital securities. JB Financial Group will conduct a bookbuilding process on September 2 for 100 billion won in hybrid capital securities, which include an early redemption option after five years. iM Financial Group will raise 100 billion won on the 3rd, with a target interest rate ceiling of 5.0% per annum.

Shinhan Financial Group will conduct a bookbuilding process on the 4th for 270 billion won worth of hybrid capital securities. The target yield range is 4.3% to 4.9% per annum, and the company plans to increase the offering size to up to 400 billion won.

A bond market official stated, “While corporate bond issuances continue, led by securities firms with high credit ratings, financial holding companies are also issuing hybrid capital securities to bolster their capital,” adding, “As the September refinancing season has begun, the volume of issuances is expected to increase for the time being.”