KT SkyLife secured orders worth three times its target in a demand forecast for a corporate bond issuance.
According to the investment banking (IB) industry on Tuesday, KT SkyLife received 150 billion won in valid orders against a total target of 50 billion won in the corporate bond demand forecast conducted that day. Specifically, the two-year tranche drew 80 billion won against a 20 billion won target, while the three-year tranche attracted 70 billion won against a 30 billion won target.
KT SkyLife filled its target at levels below market interest rates. After applying a spread of minus 30 to plus 30 basis points (1 bp = 0.01 percentage point) to the bond's fair-market yield (the company's specific yield assessed by private bond valuation firms), the two-year tranche recorded minus 2 bp and the three-year tranche minus 1 bp. KT SkyLife is reportedly considering increasing the issuance to as much as 100 billion won.
The company plans to use the funds raised through this issuance to repay debt. Shinhan Securities and KB Securities served as lead managers for the bond issuance. KT SkyLife's corporate bond credit rating is AA-, classified as investment grade.
