Korean cosmetics manufacturer Kolmar Korea has decided to issue corporate bonds worth 100 billion won (US$89.35 million), according to industry sources on Feb. 28.
Mirae Asset Daewoo is organizing its funding.
According to sources, the firm initially planned to issue bonds worth 70 billion won and estimated the demand from investors. It found that many institutional investors were keen, making the estimated demand to reach 260 billion won, so it decided to increase the funding amount to 100 billion won.
Kolmar Korea is hoping to use the funds to pay back its loans, including the one it took from Woori Bank. Korea Kolmar’s loans, reached around 11.5.4 billion won in 2017 but jumped to 945.5 billion won as of third quarter last year after acquiring CJ Healthcare for 1.31 trillion won. The debt-equity ratio also jumped to 173 percent from 101 percent during the same period.
Despite the company’s high debts, industry sources see that Kolmar Korea’s increasing sales are attracting investors. Its sales, of 282.2 billion won in 2013 reached over 1.35 trillion won last year.
Its operating profit also improved especially after the cosmetics producer acquired CJ Healthcare last year. The company’s operating profit increased 34 percent to 89.9 billion won from 66.9 billion won in 2017.
By Song Seung-hyun (firstname.lastname@example.org)