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[Apha Biz=(Chicago) Reporter Paul Lee] Combined Asset Management (Uamco), which specializes in corporate restructuring and acquisition of bad loans, has succeeded in raising more than seven times the amount of funds in its 200 billion won corporate bond demand forecast.
According to the investment banking industry, UAMCO, a credit rating "AA," received a total of 1.41 trillion won in purchase orders on the 21st, including 900 billion won for three years (120 billion won) and 510 billion won for five years (80 billion won). UAMCO offered an interest rate adding -30bp (1bp is 0.01bp) to individual private interest rates (unique interest rate of companies assessed by private bond appraisers), which was filled with -3bp for three-year bonds and -12bp for five-year bonds. This means that many investors wanted to buy UAMCO corporate bonds more expensive than the market assessed.
It is the second time this year that UAMCO has issued public bonds. UAMCO also succeeded in receiving 1.2 trillion won in purchase orders earlier this year when it predicted demand for 70 billion won worth of three-year corporate bonds. The purpose of issuance is the same as refinancing existing borrowings. Thanks to the sufficient amount of orders, UAMCO is considering increasing up to 400 billion won on the 29th, and will also use it to pay back corporate notes (CP) or short-term bonds, which expires in late August.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
