MOSCOW (MRC) -- Hanwha Total Petrochemical Co. has issued USD400 million (449 billion won) worth of overseas bonds for the first time since its founding, as per BusinessKorea.
The company has sold the bonds to institutional investors in Asia and Europe. The US dollar-denominated senior unsecured notes carry a coupon rate of 3.914 percent. A total of 92 institutional investors participated in the bond offering, subscribing to USd1.5 billion (1.68 trillion won) worth of bonds.
Hanwha Total Petrochemical has decided to invest the funds from the overseas bond offering in its facilities. The company will make a 1.43 trillion won (USd1.27 billion) investment in its plant in Daesan, South Chungcheong Province, by 2020 to boost production of ethylene to 460,000 tons, polyethylene 400,000 tons and polypropylene 400,000 tons.
Meanwhile, Moody's Investors Service and S&P Global Ratings assigned aa1 and BBB rating with a stable outlook, respectively, to the senior unsecured notes to be issued by Hanwha Total Petrochemical.
As MRC reported before, Hanwha Total Petrochemical Co Ltd said in December 2017 it plans to spend USD331.29 MM on a new factory in South Korea to increase polyethylene (PE) output by 400 Mtpy by 2019.
Hanwha Group is one of the largest business conglomerate in South Korea. Founded in 1952 as Korea Explosives Inc., the group has grown into a large multi-profile business conglomerate, with diversified holdings stretching from explosives, their original business, to retail to financial services.
MRC