[Edaily Marketin KIM YEON-SEO Reporter] LOTTE rental (A+) achieved a successful placement in its corporate bond bookbuilding, raising more than four times the target amount. However, while the 1.5-year and 2-year bonds were fully subscribed at rates higher than their respective market averages, the 3-year bond was priced below the market average, highlighting a difference in yields across maturities.

According to the investment banking (IB) industry on the 20th, LOTTE rental received a total of 644 billion won in orders during its bookbuilding process for institutional investors aimed at issuing corporate bonds totaling 150 billion won. This amount is approximately 4.3 times the target offering amount.

By tranche (maturity), 151 billion won was raised for the 1.5-year tranche (target: 50 billion won), 294 billion won for the 2-year tranche (target: 80 billion won), and 199 billion won for the 3-year tranche (target: 20 billion won).

LOTTE rental set its target yield band at -30 basis points (1 bp = 0.01 percentage point) to +30 basis points relative to the individual market average yield across all maturities. According to the bookbuilding results, the 1.5-year notes were priced at +5 basis points and the 2-year notes at +2 basis points relative to the individual market average rates. In contrast, the 3-year notes were priced at -7 basis points relative to the individual market average rate, reaching the target amount and resulting in an under-pricing.

Based on these bookbuilding results, LOTTE rental plans to consider increasing the issuance amount by up to 300 billion won. The final issuance rate may vary depending on the total issuance amount.

Eight firms served as lead underwriters: SamsungSecurities, NH INVESTMENT & SECURITIES, KB Securities, Korea Investment & Securities, KIWOOM Securities, Shinhan Investment Securities, MIRAE ASSET SECURITIES, and HYUNDAI MOTOR SECURITIES.

The company plans to use all funds raised from this corporate bond issuance to repay debt. The proceeds will be used to refinance electronic short-term bonds and commercial paper (CP) maturing this November.