Korean Inc. debt offering over $ 4 bn in Jan before interest rates go higher

Korean companies of both investment and sub-investment grade are rushing to the debt market before interest rates go higher.

According to sources from the investment banking (IB) industry on Wednesday, the first 2022-dated issues from Korean Inc. would come from rolling stock maker Hyundai Rotem and Doosan readying bookbuilding respectively on Jan. 11 and Jan. 13.

Korean Air Lines and Hanjin are also planning offering in 300 billion won ($250 million) and 70 billion won ($58 million) on the 20th and 30th, respectively.

Korea¡¯s wireless carrier KT eyes up to 300 billion won issue in multiple tranches in three-year, five-year, and 20-year maturities on Jan. 27 after bookbuilding on Jan. 20.

No. 1 car rental business Lotte Rental Co. plans environment, society and governance (ESG) theme after last year¡¯s green bond.

Corporate offering is estimated at around 5 trillion won this month.

The Bank of Korea is highly expected to deliver another raise in Jan. 14 policy meeting, which will place the benchmark rate at 1.25 percent after two hikes in the second half of last year. Companies are rushing with debt issues before borrowing rates move higher, one investment bank official said.

[¨Ï Maeil Business Newspaper & mk.co.kr, All rights reserved]