Corporate bonds of Hite-Jinro attracted more than 270 billion won of application, which is much bigger than its original target of 80 billion won, based on cooperation with NH Investment & Securities. Photo Hite-Jinro

Brokerage successfully raises funds for alcoholic beverage maker

Hite-Jinro, a South Korean manufacturer of alcoholic beverages, attempted to raise funds amounting to 80 billion won ($64 million) by issuing corporate bonds.

The Seoul-based outfit asked a brokerage house, to take charge of the issuance.

On June 2, the brokerage started receiving subscription for the corporate bonds with a maturity of three years and five years.

Few expected that the issuance would attract more than 270 billion won of application, which is three times more than the original goal.

“We cannot expect a success in any fund-raising projects after the outbreak of the virus pandemic this year. In the sense, Hite-Jinro would be happy with the result. It might adopt a good strategy,” said an industry source who asked not to be named. 

Observers pointed out that the brokerage’s know-how in corporate bonds issuance has worked to cause the unexpected over-subscription.

As a result, Hite-Jinro will be able to raise the amount by up to 150 billion won more.

Hite-Jinro saw its first-quarter sales jump 26 percent from a year ago. It also swung to a profit, which stood at 56.1 billion won.