Recently, the corporate bond market continues to show good trends, and SK REIT is pushing for funding through the issuance of corporate bonds.
According to investment banking (IB) industry sources on the 11th, SK REIT will issue a total of 150 billion won in corporate bonds, consisting of 70 billion won for 2-year bonds and 80 billion won for 3-year bonds. It is also considering increasing the amount to a maximum of 250 billion won, depending on the results of the demand forecast scheduled for the 13th. The issuance date is set for the 20th.
The interest rate band was presented at a level of -30bp (1bp=0.01 percentage points) to +30bp compared to the evaluation rate of individual private bond appraisers. The leading underwriters are NH Investment & Securities, Korea Investment & Securities, Shinhan Investment Corporation, Samsung Securities, and SK Securities.
This is the second corporate bond issuance by SK REIT this year. In the demand forecast for the 6th issuance of unsecured corporate bonds worth 150 billion won in February, it received orders close to 4.5 times the offering amount, totaling 680 billion won.
At that time, demand surged for both 2-year and 3-year bonds, increasing the issuance size to 270 billion won. The issuance rates were also lowered to 3.318% for 2-year bonds and 3.372% for 3-year bonds.
The purpose of this corporate bond issuance is to repay borrowing funds. SK REIT secured 145 billion won at a fixed interest rate of 3.95% last May. This is approaching maturity on the 22nd of this month.
SK REIT, which has the largest assets in the country at 4.2326 trillion won, invests in buildings leased by SK, SK hynix, SK Energy, and SK Plant.