April 27, 2024

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(Daewoo E&C)

Major South Korean builder Daewoo Engineering & Construction (Daewoo E&C) said Tuesday it has successfully conducted a 150 million-Singapore dollar ($111 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)