Hana F&I secured KRW 687 billion in orders for a KRW 150 billion corporate bond offering on the 27th, according to investment banking industry sources. The company is raising funds to repay maturing commercial paper (CP) and electronic short-term bonds next month. Hana F&I holds an A+ (stable) credit rating, supported by improved profitability as the non-performing loan (NPL) market expanded rapidly since 2023.
Hana F&I Bond Offering Attracts 4.6x Oversubscription on 3-Year Tranche
Hana F&I conducted a demand forecast on the 27th for a KRW 150 billion corporate bond issuance across three maturities. The offering comprised KRW 30 billion in 1.5-year bonds, KRW 70 billion in 2-year bonds, and KRW 50 billion in 3-year bonds.
The 1.5-year tranche attracted KRW 90 billion in orders, while the 2-year tranche received KRW 92 billion. The 3-year tranche drew KRW 505 billion in demand, driving the strongest competition among the three maturities.
Spreads based on募集額 were set at 1bp, 1bp, and 12bp below同一 maturity民平 benchmarks for the 1.5-year, 2-year, and 3-year tranches respectively. The 3-year tranche demonstrated exceptionally strong demand due to the large capital inflow into that maturity segment.
Hana F&I Considers Increasing Bond Issuance to KRW 300 Billion
Hana F&I is reviewing an increase in the bond issuance to a maximum of KRW 300 billion based on the demand forecast results. Korea Investment & Securities, NH Investment & Securities, KB Securities, and Shinhan Investment & Securities served as underwriters for the offering.
The proceeds will be used to repay commercial paper (CP) and electronic short-term bonds maturing next month.
Hana F&I Credit Rating Upgraded to A+ Amid Asset Growth
Hana F&I's credit rating stands at A+ (stable). The rating benefited from improved profitability as the non-performing loan (NPL) market expanded rapidly since 2023.
On a consolidated basis, Hana F&I's total assets surged from KRW 1.3025 trillion at the end of 2022 to KRW 2.4271 trillion the following year, reaching approximately KRW 2.9 trillion by the end of last year. NPL investment assets also increased substantially from KRW 969.4 billion at the end of 2022 to KRW 2.4185 trillion at the end of last year.
The credit rating was upgraded from A to A+ early last year.
FAQ
What did Hana F&I achieve in its bond offering on the 27th?
Hana F&I secured KRW 687 billion in orders for a KRW 150 billion corporate bond offering on the 27th. The 3-year tranche attracted KRW 505 billion in demand, representing the strongest investor interest among the three maturities.
Why did Hana F&I issue corporate bonds?
Hana F&I issued corporate bonds to repay maturing commercial paper (CP) and electronic short-term bonds next month. The company is reviewing an increase in the bond issuance to a maximum of KRW 300 billion based on demand forecast results.
How has Hana F&I's credit rating changed?
Hana F&I's credit rating was upgraded from A to A+ early last year. The upgrade reflected improved profitability as the non-performing loan (NPL) market expanded rapidly since 2023, with total assets growing from KRW 1.3025 trillion at the end of 2022 to approximately KRW 2.9 trillion at the end of last year.
