KB Securities secured orders exceeding three times its target in a demand forecast for a corporate bond issuance.
The company received 1.23 trillion won in valid orders against a total target of 400 billion won in a corporate bond demand forecast conducted Monday, according to investment banking (IB) industry sources. Specifically, the two-year tranche drew 670 billion won against a 150 billion won target, while the three-year tranche attracted 560 billion won against a 250 billion won target.
Interest rates diverged across maturity structures (tranches). After applying a range of -30 to 30 basis points (1bp=0.01 percentage point) to the fair market yield (a company's specific rate assessed by private bond rating agencies), the two-year tranche filled its target at -3bp, while the three-year tranche came in at +4bp.
KB Securities plans to use the funds raised through this issuance for debt repayment. The bond issuance was managed by Samsung Securities, Kiwoom Securities, SK Securities, Korea Investment & Securities, Daishin Securities, and Hana Securities. KB Securities' corporate bond credit rating is AA+, classified as high-grade.
