[Edaily Marketin Reporter LEE GEON-EOM ] TaihanElectricWire(001440)The company successfully secured the target amount of funds through a corporate bond bookbuilding process. Analysts say the results were solid, with the spread over the market average remaining within a reasonable range.

According to the financial investment industry on the 15th, Taihan Cable & Solution received a total of 119 billion won in orders during the bookbuilding for its 40 billion won unsecured corporate bond offering held that day. By maturity, orders totaling 43 billion won and 76 billion won were received for the 2-year and 3-year bonds, respectively, for which the company sought to raise 20 billion won each. Based on the results of the bookbuilding, Taihan Cable & Solution has left open the possibility of increasing the issuance amount by up to 80 billion won.

Interest rates were also set at reasonable levels. Based on the offering amount, the expected spread for the 2-year bond is 6 basis points (1 bp = 0.01 percentage point) higher than the arithmetic mean of individual market average yields. The 3-year bond is estimated to be at the same level as the individual market average yield. Taihan Cable & Solution had initially proposed a spread band of -30 bp to +30 bp relative to the arithmetic mean of individual market average yields for both the 2-year and 3-year bonds.

Lee Ye-chan, a researcher at Korea Ratings Corporation, stated, “Amid a significant expansion of capital expenditures related to the Dangjin submarine cable project, cash flow slowed due to an increase in inventory assets for overseas project deliveries and a decrease in accounts payable resulting from expanded usance financing for raw material procurement,” and He explained, “While a favorable market environment driven by expanded investment in power infrastructure is expected to continue in the medium term, factors such as the profitability of individual projects and timing differences in revenue recognition could act as variables affecting performance.”

Meanwhile, Taihan Cable & Solution plans to use the proceeds from the offering for working capital, such as payments for raw materials. MIRAE ASSET SECURITIES, KB Securities, Korea Investment & Securities, and DaishinSecurities served as lead underwriters for this corporate bond offering.