This article appeared on the capital markets service "Signal" at 5:45 p.m. on August 19, 2026.
E-Land World failed to fully sell a corporate bond in its third demand forecast of the year, as retail investors pulled back following defaults at JR Global REIT and JoongAng Group.
E-Land World held a demand forecast on the 19th targeting institutional investors to raise 20 billion won ($14.5 million) through a single one-year note, according to investment banking sources. Institutions placed orders totaling 18 billion won, 2 billion won short of the target. Under the firm underwriting agreement, lead manager Kyobo Securities will take on the unsold portion and later sell it down.
The interest rate is expected to be set above prevailing market levels. Ahead of the sale, E-Land World set its target rate band by adding minus 30 to plus 30 basis points to its individual fair-market yield, the company-specific rate assessed by private bond-rating firms (1 basis point equals 0.01 percentage point). The rate formed at the top of the band. If E-Land World's individual fair-market yield on one-year notes — 6.990% as of the previous day — holds until the payment date, the company will raise funds at around 7.2%.
The outcome is attributed to a retreat by retail investors who had been buying E-Land World bonds before the defaults at JR REIT and JoongAng Group affiliates. E-Land World, rated "BBB0, stable" by domestic credit-rating agencies, also held demand forecasts in February and early April to raise 30 billion won each time, drawing orders of 43 billion won and 73 billion won respectively. But sentiment toward lower-grade bonds weakened after JR REIT filed for court receivership on April 27, and Hanjin (BBB+) also drew 1 billion won in unsold orders in its demand forecast on the 14th of last month.
E-Land World plans to use the proceeds from this public bond issue to repay debt, refinancing a 60 billion won bond maturing on August 27 this year. Kyobo Securities served as the sole lead manager for the issue.
