KCC Issues KRW 400bn Unsecured Public Bonds…Strong Demand
Purpose: Issuance of Series 80-1 (KRW 100bn, 2yr, 3.491%) and Series 80-2 (KRW 300bn, 3yr, 3.695%) unsecured public bonds on Feb 2, 2026. All proceeds (~KRW 398.8bn) used to repay existing short-term borrowings and CP.
Strong Demand: Initial plan of KRW 200bn increased to KRW 400bn. Oversubscription ratios: 8.4:1 for 80-1, 4.5:1 for 80-2. Total demand exceeded KRW 1.1tn.
Credit Rating: AA- (Stable) from KIS and K-REA, citing strong market position, diversified business portfolio, and healthy earnings.
Financials: 2025 9M cumulative consolidated revenue KRW 4.9tn, operating profit KRW 361.1bn, net profit KRW 1.26tn. Debt ratio improved to 117.6% from 154.6% year-end (asset revaluation effect).
Key Risks: Continued construction downturn, volatility in silicone business, FX and raw material fluctuations, contingent liabilities related to PTC (~KRW 231.2bn) and financial burden from Momentive acquisition. (Refer to prospectus risk factors.)
Bond Covenants: Maintain debt ratio below 300%, restrictions on security creation and asset disposal.