Korea Zinc Successfully Issues $530 Million in Corporate Bonds
Korea Zinc Successfully Issues $530 Million in Corporate Bonds
Korea Zinc announced the successful issuance of its 13th series of corporate bonds, totaling 700 billion won, on October 29, 2025. The bond issuance was met with strong market interest and successfully completed, reflecting investor confidence in Korea Zinc's stable financial structure and future growth potential. The success in securing large-scale funding amidst recent challenging market conditions is particularly significant. The funds raised through the bond issuance are expected to contribute to future business expansion and enhanced financial soundness. Korea Zinc plans to solidify its growth base and strengthen its position as a global comprehensive non-ferrous metal company through this bond issuance. The high level of investor interest and participation suggests continued growth potential for Korea Zinc and is expected to positively impact its future corporate value.
Prior to this bond issuance, Korea Zinc conducted a demand forecast targeting institutional investors on October 21, 2025. The demand forecast revealed investment funds totaling 2.55 trillion won, exceeding the initially planned issuance size. This demonstrates investors' high confidence in Korea Zinc's excellent credit rating and stable business portfolio. Buoyed by the success of the demand forecast, Korea Zinc decided to increase the bond issuance size, ultimately issuing 700 billion won in corporate bonds. The strong interest from institutional investors reflects their high valuation of Korea Zinc's financial stability and growth potential, which is expected to positively impact future investment attraction and fundraising. The achievement is particularly noteworthy in light of the highly uncertain financial market environment.
The issued corporate bonds are composed of 3-year and 5-year maturities. Specifically, the 3-year bonds (13-1 series) were issued in the amount of 350 billion won, and the 5-year bonds (13-2 series) were also issued in the amount of 350 billion won. By issuing corporate bonds with such diverse maturities, Korea Zinc has secured the stability of its fundraising and can flexibly respond to market conditions. While satisfying investor demand for both 3-year and 5-year bonds, the issuance interest rate is also considered to have been determined at a reasonable level. By diversifying the corporate bond maturity structure, Korea Zinc is well-positioned to efficiently establish future funding plans and pursue long-term growth strategies. It is also expected to contribute to diversifying investment portfolios by providing investors with a variety of investment options.
Korea Zinc announced that it plans to use all funds raised through this bond issuance to repay debt. Specifically, it will be used to repay 600 billion won in trade finance and 100 billion won in short-term bonds. Through this debt repayment, Korea Zinc is expected to further improve its financial structure and reduce financial costs. In particular, the repayment of trade finance and short-term bonds is expected to contribute to securing the company's liquidity and resolving short-term financial risks. By maintaining a stable financial condition, Korea Zinc will be able to be more aggressive in future investments and business expansions. It is also expected to be able to focus on securing future growth engines, such as entering new businesses and investing in research and development, based on the funds secured through debt repayment.
The issuance interest rate for the 3-year bonds (13-1 series) was determined to be 3.050%, and the 5-year bonds (13-2 series) were determined to be 3.287%. This is considered to be a relatively stable level, considering recent market interest rate volatility. This is interpreted as a reflection of Korea Zinc's excellent credit rating and stable business performance. By successfully raising funds at a reasonable interest rate level, Korea Zinc is expected to minimize its financial cost burden and improve profitability. In particular, the stable management of the interest rate on the long-term 5-year bonds is also evaluated as having prepared for future interest rate volatility risks. This corporate bond issuance interest rate determination is an example of demonstrating Korea Zinc's financial management capabilities and market credibility, and is expected to have a positive impact on future fundraising processes.
