Hanwha Aerospace has issued $500 million in international bonds, marking the first instance for a South Korean defense and aerospace company.
On July 21, Hanwha Aerospace announced that it had confirmed the issuance of $500 million (approximately 741 billion won) after conducting demand forecasting for U.S. dollar bonds in Europe and Asia.
The bonds have a fixed interest rate and a maturity of three years. The issuance rate is set at a level that adds 83 basis points (1 basis point = 0.01 percentage points) to the yield of U.S. Treasury bonds of the same maturity. The final terms were 32 basis points more favorable than the initial pricing guidance (IPG).
Leading underwriters for the issuance included Citigroup Global Markets, Crédit Agricole Securities, and UBS.
The demand forecast attracted approximately $3.3 billion, nearly seven times the issuance amount, indicating strong recognition of Hanwha Aerospace's global competitiveness.
Previously, Hanwha Aerospace became the first South Korean defense and aerospace company to receive an A- credit rating from global credit rating agency Standard & Poor's (S&P) last month.
A representative from Hanwha Aerospace stated, "The successful completion of our first international bond issuance reflects the high regard that prominent global investors have for Hanwha Aerospace's growth potential and financial stability."
* This article has been translated by AI.
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