Daewoo E&C sells bonds worth 150 mil. in Singapore dollars
Daewoo E&C headquarters in Seoul is seen in this undated file photo provided by Daewoo E&C. Yonhap
Major Korean builder Daewoo Engineering & Construction (Daewoo E&C) said Tuesday it has successfully conducted a 150 million-Singapore dollar ($112 million) bond sale in the city-state.
The five-year bonds, which have received an AA rating from global rating appraiser Standard & Poor's Global Ratings (S&P), carry a fixed interest of 3.88 percent, lower than its offered rate of 4.1 percent.
Fully guaranteed by the Credit Guarantee & Investment Facility belonging to the Asian Development Bank, the bonds were 2.87 times oversubscribed with more than 20 institutions showing interest, Daewoo E&C said.
The proceeds will be used to finance Daewoo E&C's subway construction in the city-state, it added.
"It is rare for the CGIF to provide a full guarantee for a debt sale by a single Korean company," a Daewoo E&C official said. "It is proof of Daewoo E&C's excellent construction capabilities and strong relationships with local financial firms."
Daewoo E&C has recently succeeded in selling bonds in overseas markets amid a rising order backlog.
In May 2023, the construction company floated Islam bonds worth $100 million through a Kuwait-based bank and sold another $100 million two months later.
Daewoo E&C said the company will seek to diversify its financing sources down the road, buoyed by the recent successful overseas debt sales. (Yonhap)