The Chunmoo multiple-launch precision-guided weapon system. [Hanwha Aerospace]
The Chunmoo multiple-launch precision-guided weapon system. [Hanwha Aerospace]

Hanwha Aerospace said Tuesday it completed a bookbuilding process with investors in Europe, Asia and other markets, securing $500 million through its first overseas public bond offering.

The bonds are three-year fixed-rate notes priced at a spread of 83 basis points over the equivalent-maturity US Treasury yield — 32 basis points tighter than the initial price guidance of 115 basis points. Citigroup Global Markets, Credit Agricole Securities and UBS served as joint bookrunners.

The bookbuilding drew $3.3 billion in orders, roughly seven times the issuance size. The result follows Hanwha Aerospace's receipt last month of an A- credit rating from S&P Global Ratings — the first awarded to a South Korean defense and aerospace company by the global agency. An S&P A- rating signals not merely that an investment is acceptable, but that the issuer is a safe and reliable investment-grade borrower. Among global defense companies, Lockheed Martin of the United States and BAE Systems of the United Kingdom hold the same rating.

Hanwha Aerospace plans to use the proceeds for working capital and debt repayment. "The successful completion of our first overseas public bond offering reflects the high regard that leading global institutional investors have for Hanwha Aerospace's growth potential and financial soundness," a company official said. "We will continue to strengthen our competitiveness in the global defense and aerospace market, backed by our stable funding capabilities."


yeongdai@heraldcorp.com