Hyundai Department Store Successfully Issues KRW 200bn AA+ Bonds - Demand Forecast 11.5x-22.8x, Negative Spread
Issuance size: 33-1: KRW 130bn (2yr), 33-2: KRW 70bn (3yr), total KRW 200bn (increased from initial KRW 150bn)
Demand forecast results: 33-1: KRW 1,150bn (11.5x oversubscribed), 33-2: KRW 1,140bn (22.8x oversubscribed) – all effective demand within the upper end of the guidance range
Final coupon: individual bond yield minus 0.17%p for 33-1 and minus 0.19%p for 33-2 (near the lower end of guidance)
Credit rating: AA+ (stable) by Korea Ratings, KIS Ratings, NICE Ratings
Use of proceeds: Refinancing – repay KRW 200bn bond maturing on April 27, 2026
Financial highlights (2025 consolidated): Revenue KRW 4.23tn, operating profit KRW 377.9bn (+33.1% YoY), net income KRW 141.5bn, debt-to-equity ratio 78.3%, interest coverage ratio 5.1x
Dividend policy: Target annual dividend of KRW 50bn by 2027; interim dividend of at least KRW 10bn in 2025
Share buyback: Planned KRW 21bn share buyback from Feb to May 2026; cancellation of 1,064,000 treasury shares in 2026
Key risks: Economic slowdown, competition from other retail channels, regulatory risks, dependency on duty-free shop licenses, etc.
KOSPI Filing Information
Filing: [Correction of Description] Securities Registration Statement (Debt Securities)