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Lotte E&C Successfully Raises Funds in Corporate Bond Demand Forecast
Industrial Services · Engineering & Construction · yonhap_finance · 2026-08-19
Lotte E&C attracted 151 billion KRW in orders for its 50 billion KRW corporate bond offering, driven by improved operating profits and lower debt ratios.
What Happened
Demand Forecast Success: Lotte E&C successfully attracted 151 billion KRW in orders during its demand forecast for 50 billion KRW in unsecured corporate bonds. Given the strong demand, the company is considering increasing the issuance size up to 100 billion KRW.
Pricing and Maturity: The issuance included 1-year and 1.5-year tranches. The 1-year bond was priced at 30bp above the individual private valuation yield, while the 1.5-year bond matched the valuation yield. The proceeds will be used for debt repayment.
Growth Drivers: Analysts attribute the successful fundraising to Lotte E&C's improved financial health. The company reported a 230% year-on-year increase in Q2 operating profit and a steady decline in its debt-to-equity ratio, boosting investor confidence.
Underwriting Syndicate: The issuance was supported by a large group of lead underwriters, including KB Securities, NH Investment & Securities, Korea Investment & Securities, Kiwoom Securities, Samsung Securities, Hana Securities, and Mirae Asset Securities.