This article appeared on Signal, the capital markets compass, at 5:56 p.m. on May 21, 2026.
Shinsegae has successfully drawn investor interest in its corporate bond sale, securing orders worth five times its target in a demand forecast.
According to investment banking industry sources on Thursday, Shinsegae received 1.25 trillion won in valid orders against a 250 billion won target in the demand forecast conducted that day. Specifically, the two-year tranche drew 570 billion won in bids against a 100 billion won target, while the three-year tranche attracted 680 billion won against a 150 billion won target.
Shinsegae is expected to raise the funds at levels close to prevailing market rates. With a spread range of -30 to +30 basis points (1bp = 0.01 percentage point) added to the private valuation rate—the company-specific yield assessed by private bond rating agencies—the two-year tranche filled its target at -7bp, while the three-year tranche was filled at the same level as the private valuation rate.
Shinsegae plans to use the proceeds from the issuance to repay debt. NH Investment & Securities, Shinhan Securities and Kiwoom Securities served as lead managers for the bond sale. Shinsegae's corporate bond credit rating is AA, classified as investment grade.
Meanwhile, Dongwha Enterprise, which carries a BBB+ credit rating, saw its entire 40 billion won corporate bond offering go unsold in a demand forecast the same day. Amid continued rate increases, institutional demand has concentrated on higher-rated issuers, market watchers said. Dongwha Enterprise had offered a fixed coupon of 6.50%. As of Thursday, the yield on 18-month BBB+ corporate bonds stood at 6.084%.
