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South Korea’s top telecommunications company SK Telecom Co.’s multi-tranche 250 billion won ($212.3 million) bond offering that included a maiden 30-year date drew more than doubled bids as heated debt demand has spilled over to corporate bonds in the Korean market.

According to investment bank industry sources on Monday, AAA-rated SK Telecom attracted nearly 1.44 trillion won for the offering of 250 billion won worth in multiple tranches during book building. The three-year notes drew 560 billion won, five-year debt 350 billion won, 10-year debt 360 billion won, and 20-year debt 110 billion won. Even its longest-ever 30-year date drew 60 billion won or tripling the offer, although it was the first corporate bond in Korea that long.

The sale would be 100 billion won in three-year, 50 billion won in five-year, 50 billion won in 10-year, 30 billion won in 20-year, and 20 billion won in 30-year. Given the demand, even the 30-year debt will likely be issued at a cheap yield of around 1.6 percent.

On Monday, 10- and 30-year government bonds ended at yields of 1.465 percent and 1.475 percent, respectively.

The company will use the entire proceeds to refinance debts.

Mirae Asset Daewoo and SK Securities are the underwriters of the bonds to be issued on July 29.

SK Telecom is rated AAA by the country’s top three credit rating agencies Korea Investors Service, Korea Ratings, and NICE Investors Service, with a stable outlook maintained for years.

[ⓒ Maeil Business Newspaper & mk.co.kr, All rights reserved]