Funding for Facilities Expansion
Hanwha Total Petrochemical Co. said on Jan. 20 that it has issued US$400 million (449 billion won) worth of overseas bonds for the first time since its founding.
The company has sold the bonds to institutional investors in Asia and Europe. The U.S. dollar-denominated senior unsecured notes carry a coupon rate of 3.914 percent. A total of 92 institutional investors participated in the bond offering, subscribing to US$1.5 billion (1.68 trillion won) worth of bonds.
Hanwha Total Petrochemical has decided to invest the funds from the overseas bond offering in its facilities. The company will make a 1.43 trillion won (US$1.27 billion) investment in its plant in Daesan, South Chungcheong Province, by 2020 to boost production of ethylene to 460,000 tons, polyethylene 400,000 tons and polypropylene 400,000 tons.
Meanwhile, Moody's Investors Service and S&P Global Ratings assigned aa1 and BBB rating with a stable outlook, respectively, to the senior unsecured notes to be issued by Hanwha Total Petrochemical.