Tapping into Abundant Demand
Mirae Asset Capital Co. is issuing commercial paper (CP) on a large scale. The company is tapping into an abundant demand for securities at the beginning of the year to extend its debt maturity and diversify fundraising channels. The company has raised funds through corporate bond issuance to invest in new technology companies at home and abroad.
Mirae Asset Capital will issue 400 billion won (US$356.19 million) worth of CPs, according to investment banking (IB) industry sources on Feb. 13. The CPs are expected to include 200 billion won (US$178.09 million) with a maturity of 2.5 years and 200 billion won (US$178.09 million) with a maturity of 3 years at a discount rate of 2.2 percent. They will have a credit rating of A1 and will be managed by Kiwoom Securities Co.
Earlier this year, Mirae Asset Capital issued corporate bonds worth 400 billion won (US$356.19 million). It initially planned to raise 200 billion won (US$178.09 million) but doubled the bond offering as subscriptions amounted to 950 billion won (US$845.95 million). The company raised 700 billion won (US$623.33 million) of funds by issuing corporate bonds four times last year, almost double the 370 billion won (US$329.47 million) issued in 2017. Including the issuance of CPs, Mirae Asset Capital raised more than 1 trillion won (US$890.47 million) of funds last year.
An official from the company said, “We are planning to use the funds raised through the CP offering for operational purposes, such as short-term CP repayment and investment financing, lease installment financing and retain financing.” The total assets of Mirae Asset Capital surged from 2.4 trillion won (US$2.13 billion) at the end of 2017 to 4.1 trillion won (US$3.64 billion) at the end of 2018.