EcoPro receives $163 mn worth of bond orders from institutional investors

[Courtesy of EcoPro]

EcoPro Co., South Korea’s leading producer of secondary battery materials, received overwhelming demand for its latest offering during the book building session on Monday.

According to multiple sources from the financial investment industry on Monday, EcoPro received corporate bond orders worth 206 billion won ($162.9 million), up from initial 100 billion won during its first book building session.

EcoPro plans to issue 100 billion won in corporate notes, including 50 billion won in 18-month maturity and 50 billion won in two-year maturity.

Institutional investors made bids worth 89 billion won for the 18-month maturity bond and 117 billion won for the two-year maturity bond.

Secondary battery manufacturers are drawing much attention from investors in the corporate bond market.

LG Energy Solution Ltd. received a total of 4.72 trillion won in orders during its book building session on June 22, which is nine times the initial amount of 500 billion won. The battery manufacturer issued the maximum amount of 1 trillion won.

Industry sources note that EcoPro received a relatively smaller amount of orders than LG Energy Solution (AA-rated) as it is offering A-rated bonds.

“The bond market places a higher value on the reliability of a company rather than its growth potential,” said an unnamed official from a brokerage firm.

Shares of EcoPro finished 1.11 percent higher at 999,000 won on Monday. The stock saw its price exceed 1 million won during the day, setting a new record for the highest closing price.