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| CJ제일제당 본사 전경 (사진=CJ) |
[Alpha Biz= Paul Lee] CJ CheilJedang is looking to raise 600 billion KRW in the public bond market.
According to investment banking (IB) industry sources on Sunday, this week (April 7-11), several companies, including LX Hausys (A+), CJ CheilJedang (AA), Kiwoom Securities (AA-), Samchully (AA+), POSCO E&C (A+), Pyeongtaek Energy & Power (A), LX International (AA-), SK Networks (AA-), SeAH Steel (A+), Lotte REITs (AA- secured bonds), and IGC (SK Innovation principal and interest guarantee, AA), are preparing to conduct institutional investor demand forecasts for public corporate bond issuance.
CJ CheilJedang is returning to the public corporate bond market for the first time in 1 year and 3 months since January of last year. The company plans to issue a total of 3 billion KRW in corporate bonds, with 2 billion KRW for 3-year bonds and 1 billion KRW for 5-year bonds. Depending on the demand forecast results, the issuance could be increased up to 6 billion KRW.
The proposed interest rate for the issuance is expected to range from -30bps (basis points, 1bp = 0.01%) to +30bps relative to individual private bond rating agency evaluations. The lead managers for the issuance are NH Investment & Securities, KB Securities, Korea Investment & Securities, Shinhan Investment Corp., and Kiwoom Securities.
The funds raised are expected to be used for debt repayment. CJ CheilJedang has a total of 1.25 trillion KRW in public bonds maturing in October, and its commercial paper (CP) outstanding amounts to 6.7 trillion KRW, indicating a pressing need for liquidity.
Since November of last year, CJ CheilJedang has been actively pursuing the sale of its green bio business, which accounts for about 90% of its bio revenue. MBK Partners, a domestic private equity firm (PEF), has been considered a potential buyer, but it is now anticipated that they may not participate in the bidding process due to the aftermath of Homeplus' rehabilitation proceedings.
As the sale of the green bio business has been delayed, CJ CheilJedang has increased its CP issuance to secure cash. The company has raised a total of 2.93 trillion KRW in CPs from January 1 to April 4 this year.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
