Mirae Asset Securities filed a securities report on the 29th of last month to raise 1.26 trillion won from SK Hynix through long-term commercial paper (CP) issuance, with SK Hynix agreeing to purchase the entire offering. The fundraising targets M&A and venture investment activities. SK Hynix has emerged as a key institutional investor in the bond market, expanding its investment scope from 2-year to 3-year maturity bonds and now participating in CP with maturities extending to July 2029.
SK Hynix Purchases Entire 1.26 Trillion Won CP Issuance
Mirae Asset Securities submitted a securities filing to the Financial Supervisory Service on the 29th of last month for a 1.26 trillion won CP issuance. All CP maturities exceed 2 years. This marks Mirae Asset Securities' first-ever long-term CP issuance.
SK Hynix agreed to purchase the entire 1.26 trillion won issuance. An IB industry official stated, "SK Hynix has decided to buy all the CP issued by Mirae Asset Securities. Without SK Hynix, both the maturity structure and the scale of the fundraising would have been difficult to achieve."
SK Hynix, managing abundant cash reserves, has become a core institutional investor in the bond market. In June, SK Hynix participated in demand forecasting for 2-year maturity public bonds issued by NH Investment & Securities and KB Securities. The company recently expanded its review scope to 3-year maturity bonds. The current CP issuance includes bonds maturing in July 2029.
Mirae Asset Securities holds an AA+ credit rating. Market observers note that raising trillion-won scale funds through long-term CP is unusual for a company with such a strong credit rating. Long-term CP, which uses short-term credit ratings to raise long-term funds, has been identified as a gray area in capital markets.
Mirae Asset Securities Postpones Public Bond Issuance Plan
Mirae Asset Securities postponed its original public bond issuance plan following SK Hynix's investment decision. The company had planned to conduct institutional investor demand forecasting on the 6th of this month to issue up to 400 billion won in public bonds. The original plan involved raising 100 billion won each for 2-year and 3-year bonds, with potential increases up to 400 billion won. The bond issuance schedule was postponed after SK Hynix committed to investing over 1 trillion won in long-term CP with similar maturities.
Mirae Asset Securities stock surged 11.58% after market close.
FAQ
What did Mirae Asset Securities file on the 29th of last month?
Mirae Asset Securities submitted a securities report to the Financial Supervisory Service on the 29th of last month for a 1.26 trillion won commercial paper (CP) issuance. All CP maturities exceed 2 years, and SK Hynix agreed to purchase the entire offering.
Why did Mirae Asset Securities postpone its public bond issuance?
Mirae Asset Securities postponed its public bond issuance planned for the 6th of this month after SK Hynix committed to investing over 1 trillion won in long-term CP with similar maturities. The original plan involved raising up to 400 billion won through 2-year and 3-year public bonds.
How has SK Hynix expanded its bond market investments?
SK Hynix participated in demand forecasting for 2-year maturity public bonds issued by NH Investment & Securities and KB Securities in June. The company recently expanded its investment scope to 3-year maturity bonds and now includes CP with maturities extending to July 2029.
