Mirae Asset Daewoo's Demand Forecast for Corporate Bond Issuance Including Won-Denominated SRI Bonds Hits Success

First SRI Bond SB1 Rating Achieved in the Securities Industry

[Asia Economy Reporter Song Hwajeong] Mirae Asset Daewoo announced on the 3rd that it succeeded in attracting over 1 trillion KRW in investment demand through a demand forecast for a public corporate bond issuance.

It is a rare case for a securities company to attract over 1 trillion KRW in investment demand during a public corporate bond issuance demand forecast, and the industry evaluates that as the largest securities company by equity capital in Korea, it has earned high trust from investors.

The offering amount was 150 billion KRW for the 3-year bond, 100 billion KRW for the 5-year bond, and 50 billion KRW for the 7-year bond, totaling 300 billion KRW. The demand forecast results showed 700 billion KRW for the 3-year bond, 390 billion KRW for the 5-year bond, and 130 billion KRW for the 7-year bond, securing a total investment demand of 1.22 trillion KRW.

Based on the offering amount, the interest rate demand was set at +3bp (1bp=0.01%) for the 3-year bond, -1bp for the 5-year bond, and -10bp for the 7-year bond compared to the individual average market rate.

Following the successful issuance of the first foreign currency Socially Responsible Investment (SRI) bond by a securities company in 2019, this year’s first issuance of a KRW SRI bond also succeeded, further solidifying its position as a leading ESG (Environmental, Social, and Governance) company in the securities industry.

In particular, the 5-year KRW SRI bond received the highest SB1 rating from Korea Credit Rating, the first in the securities industry, which further enhanced investor confidence.

Mirae Asset Daewoo plans to use 50% of the funds raised from the SRI bonds to refinance the Korea Housing Finance Corporation’s mortgage-backed securities (MBS) investment funds, and the remainder will be used for new investments in Korea Housing Finance Corporation MBS.