Green Cross plans W100b bond issue for global expansion
[THE INVESTOR] Green Cross is seeking to issue some 100 billion won (US$88.70 million) in bonds to invest in entering overseas markets, according to industry sources on May 19.
The drug maker, specialized in vaccine and blood derivatives, has an AA- rating with stable outlook by NICE Investors Service, the highest rating assigned to local pharma companies in Korea.
“Green Cross has hired brokerages for the bond sale and is discussing detailed structure and terms of the issue,” a source said on condition of anonymity.
KB Securities and NH Investment & Securities have been picked to help the company sell the bonds.
The firm holds a dominant position in the local blood derivatives and vaccine sector with over 80 percent market share.
As the market becomes saturated here, Green Cross is eyeing the North American market. It plans to complete construction of its new facility in Canada, which will produce intravenous immunoglobulin and albumin, this year.
This is the second bond sale in the company’s 50 years history, following the 150 billion won issue with maturities of three and five years, oversubscribed to a total of 570 billion won, in May last year.
In 2016, the company said it will invest 300 billion won from 2016 through 2018. It invested 130 billion won in expanding its production facilities last year.
By Park Han-na (firstname.lastname@example.org)