Hanwha Aerospace Issues $500 Million Overseas Public Bonds... First Global Fundraising by a Domestic Company

For Working Capital and Debt Repayment

"Sevenfold Demand in Three-Year Bond Book Building"

Hanwha Aerospace has successfully issued $500 million worth of foreign public offering bonds. This marks the first time a domestic defense and aerospace company has issued overseas public bonds.

Hanwha Building, Janggyo-dong, Seoul. Hanwha Group

Hanwha Aerospace announced on the 21st that it arranged the $500 million (approximately KRW 741 billion) deal after conducting a book building process for U.S. dollar bonds targeting investors in Europe, Asia, and other regions.

This bond is a fixed-rate bond (FXD) with a maturity of three years. The issuance rate was set at 83 basis points (1bp = 0.01 percentage point) above the yield on U.S. Treasury bonds of the same maturity, 32bp lower than the initial price guidance (IPG) of 115bp.

The joint lead managers for the issuance were Citigroup Global Markets Securities, Crédit Agricole Securities, and UBS.

The order book for the bond attracted $3.3 billion in demand, roughly seven times the amount issued. Last month, Hanwha Aerospace also became the first domestic defense and aerospace company to receive an A- credit rating from Standard & Poor's (S&P).

Hanwha Aerospace plans to use the funds raised for working capital and debt repayment.

A Hanwha Aerospace representative stated, "The successful completion of our first overseas public bond issuance is the result of leading global investors highly evaluating Hanwha Aerospace's growth potential and financial soundness." The representative added, "Based on our sound fundraising capability, we will further strengthen our competitiveness in the global defense and aerospace markets."

This content was produced with the assistance of AI translation services.