[Edaily Marketin Reporter KIM YEON-SEO ] The corporate bond issuance market, which had taken a brief hiatus during the Chuseok holiday, is expected to pick up again. While September and October are typically considered the peak period for corporate bond issuance ahead of year-end book-closing, KOREA INVESTMENT HOLDINGS is preparing to raise up to 500 billion won. LG Uplus and KoreaZinc are also making preparations to issue corporate bonds in quick succession.

According to the investment banking (IB) industry on the 27th, companies planning to issue corporate bonds in October include SK (AA+), GS Entec (A0), KoreaZinc (AA0), Hyundai Transys (AA-), KOREA INVESTMENT HOLDINGS (AA-), PARADISE (A+), LOTTE REIT (AA-), LG Uplus (AA+), GS Holdings (AA0), Kiwoom F&I (A0), and LS SECURITIES (A0). If the issuances are increased to the maximum limit, the total issuance volume is estimated to reach approximately 2.5 trillion won.

Among the companies that have currently formulated issuance plans, KOREA INVESTMENT HOLDINGS is set to raise the largest amount. KOREA INVESTMENT HOLDINGS(071050)plans to conduct a bookbuilding process targeting institutional investors for a total of 250 billion won, comprising 130 billion won in 2-year bonds and 120 billion won in 3-year bonds. Depending on the results of the bookbuilding, the company plans to increase the issuance amount to a maximum of 500 billion won.

LG Uplus(032640), which holds an “AA+” credit rating, is also preparing to issue corporate bonds worth up to 400 billion won. The company aims to raise a total of 200 billion won through bonds with maturities of 2, 3, and 5 years, and has left open the possibility of increasing the issuance to a maximum of 400 billion won depending on the results of the bookbuilding process. The issuance date is scheduled for the 21st of next month.

LOTTE REIT(330590)Lotte Premium Outlet is set to issue secured corporate bonds using its Icheon location as collateral. Secured corporate bonds are bonds issued by a company with specific assets provided as collateral. LOTTE REIT plans to conduct a bookbuilding process for a total of 125 billion won, including 50 billion won in 1-year bonds and 75 billion won in 2-year bonds. It has not established any separate plans to increase the issuance amount.

In addition, SK is preparing to issue corporate bonds totaling 200 billion won, GS Entec 60 billion won, KoreaZinc 150 billion won, PARADISE 60 billion won, GS 100 billion won, Kiwoom F&I 100 billion won, and LS SECURITIES 70 billion won. Hyundai Transys also plans to tap the corporate bond market in October.

The market expects corporate fundraising to be concentrated through October ahead of year-end book closings. This is because companies are seeking to proactively secure the funds they need ahead of year-end, while institutional investors are also moving to deploy their remaining funds before the close of their fiscal year.

A corporate bond market official stated, “With year-end book-closing approaching, the corporate bond issuance market is entering its final stretch,” adding, “As companies’ demand to secure funds in advance aligns with institutional investors’ efforts to deploy remaining funds before year-end, issuance activity is expected to remain robust through October.”