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Photo = Netmarble |
[Alpha Biz= Reporter Kim Sangjin] According to the financial investment industry on the 12th, Netmarble issued 1.2 trillion won worth of commercial paper (CP) with a maturity of one year. The outstanding balance of CP that Netmarble needs to repay or refinance within this month amounts to 150 billion won.
This extension of CP maturity is aimed at converting short-term borrowing into long-term debt. CPs are typically short-term debt instruments issued for a period of less than one year. If the maturity exceeds one year, a securities registration statement disclosing investment risks must be submitted. However, unlike corporate bonds, there is no need to conduct demand forecasts, which reduces the burden of disclosing investment risks.
This move is seen as a shift from large-scale issuance in the public offering corporate bond market three months ago. Previously, Netmarble issued 400 billion won worth of public offering corporate bonds in March. The surface interest rates for the two-year and three-year maturities were determined at approximately 4.822% and 5.006% per annum, respectively.
Alphabiz Reporter Kim SangJin(letyou@alphabiz.co.kr)
