KCC, an AA- rated South Korean materials company, secured 1.385 trillion won in buy orders during bond demand forecasting conducted on the 23rd, achieving a 6.9-times oversubscription for its planned 200 billion won corporate bond issuance. The company will use all proceeds to refinance 210 billion won in short-term bonds and commercial paper maturing from next month through October. KCC reported Q1 consolidated revenue of 1.6264 trillion won, up 1.7% year-over-year, driven by a 3.0% increase in paint division sales amid a shipbuilding boom and a 4.1% rise in silicon division sales fueled by electric vehicle and AI semiconductor demand.
KCC Secures 1.385 Trillion Won in Bond Orders with 6.9x Oversubscription
KCC conducted demand forecasting on the 23rd for a total issuance of 200 billion won in corporate bonds and received total orders of 1.385 trillion won, according to investment banking industry sources. The 2-year tranche募集 80 billion won attracted 685 billion won in orders, while the 3-year tranche募集 120 billion won drew 700 billion won in orders.
Spreads were set at 5 basis points below the individual民平 rate for the 2-year tranche and 4 basis points below for the 3-year tranche, based on the募集 amount. The maximum combined increase limit was set at 400 billion won. Six firms served as lead underwriters: NH Investment & Securities, KB Securities, Korea Investment & Securities, Shinhan Investment & Securities, Mirae Asset Securities, and Kiwoom Securities.
Company Allocates Full Proceeds to 210 Billion Won Debt Refinancing
KCC will use the entire amount raised to repay existing debt. The company plans to refinance a total of 210 billion won in short-term bonds and commercial paper maturing from next month through October.
Q1 Revenue Reaches 1.6264 Trillion Won on Shipbuilding and Semiconductor Demand
KCC recorded consolidated revenue of 1.6264 trillion won in Q1, an increase of 1.7% compared to the same period the previous year. Paint division revenue rose 3.0% year-over-year due to expanded demand for marine coatings driven by the shipbuilding industry boom. Silicon division revenue increased 4.1% year-over-year, supported by demand from electric vehicles and AI semiconductors.
As of the end of Q1, consolidated cash and cash equivalents plus short-term financial instruments totaled approximately 1.5 trillion won. The debt ratio stood at 117.6%.
FAQ
What was the result of KCC's bond demand forecasting on the 23rd?
KCC secured 1.385 trillion won in buy orders for its planned 200 billion won corporate bond issuance, achieving a 6.9-times oversubscription. The 2-year tranche募集 80 billion won received 685 billion won in orders, and the 3-year tranche募集 120 billion won attracted 700 billion won in orders.
How will KCC use the proceeds from the bond issuance?
KCC will use all proceeds to refinance existing debt. The company plans to repay a total of 210 billion won in short-term bonds and commercial paper maturing from next month through October.
What drove KCC's Q1 revenue growth?
KCC's Q1 consolidated revenue of 1.6264 trillion won, up 1.7% year-over-year, was driven by a 3.0% increase in paint division sales due to shipbuilding industry demand for marine coatings and a 4.1% rise in silicon division sales supported by electric vehicle and AI semiconductor demand.
