Hanwha Aerospace Becomes First Korean Defense Firm to Issue Overseas Public Bonds ... USD 500 Million Raised

Hanwha Aerospace has become the first domestic defense and aerospace company to issue foreign public bonds.

On July 21, Hanwha Aerospace announced that it had secured funding equivalent to KRW 741 billion, with the issuance totaling USD 500 million.

This followed the completion of a book building process in Europe, Asia, and other regions to assess demand for its USD-denominated bonds.

Hanwha Aerospace booth at 'Next Rise 2026,' the largest venture and startup exhibition in Korea.
[Photo by Hanwha Aerospace]

The foreign bonds issued this time are fixed-rate debt securities (FXD) with a 3-year maturity.

The coupon rate is set at the yield on U.S. Treasury bonds of the same maturity plus a spread of 83 basis points (1bp=0.01 percentage point), which is 32 basis points lower than the initially proposed guidance (IPG) of 115 basis points, thus offering more favorable terms.

Citigroup Global Markets Securities, Crédit Agricole Securities, and UBS served as lead managers for the issuance.

Hanwha Aerospace evaluated the success of this foreign bond issuance as following its achievement last month, when it became the first domestic defense and aerospace company to receive a credit rating of A- from global ratings agency Standard & Poor's (S&P).

The funds raised are expected to be used for operating expenses and debt repayment.

A Hanwha Aerospace representative stated, "The successful completion of our first overseas public bond issuance is a result of leading global investors highly valuing Hanwha Aerospace's growth potential and financial soundness," adding, "Based on this stable funding capability, we intend to further strengthen our competitiveness in the global defense and aerospace market."

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