Chairman Park Hyeon-joo of Mirae Asset Daewoo Securities Co. (Photo: Mirae Asset Daewoo Securities)

Mirae Asset Daewoo said on Nov. 1 that it successfully issued $300 million worth of U.S. dollar-denominated bonds on Oct. 31.

This is the first time a local brokerage has issued foreign currency-denominated corporate bonds, Mirae Asset Daewoo said.

The three-year bonds carry a spread of 135 basis points over three-year U.S. Treasury notes.

A basis point equals 0.01 percentage point. Mirae Asset Daewoo said the bonds were three times oversubscribed, showing strong demand for its debt sale. The company is planning to use the proceeds from the debt issuance for overseas investment.

An investment bank official said the debt sale has been successful, considering the low interest rate on the bonds, the difficult market environment and the fact that it was the first overseas bond issue by a local brokerage.

Representative managers are Citigroup Global Market Securities, BNP Paribas, and HSBC, and Daiwa Securities and Mirae Asset Daewoo Hong Kong also participated as co-managers.

 The timing of the bond issue took place in October after the issuance of the foreign exchange stabilization bonds by the Ministry of Economy and Finance.

“We are considering issuing corporate bonds in the form of a public offering overseas to support the company’s increased investment scale.” said an official of Mirae Asset. “If the final decision is made about the bond issue, we will be the first domestic securities firm to access funding through a public offering.”

Mirae Asset Daewoo plans to issue up to 500 billion won (US$416 million) worth of corporate bonds in Korea on September 12, apart from the overseas bond offering plan.

Accordingly, Mirae Asset Daewoo’s issuance of corporate bonds this year is expected to exceed one trillion won (US$833 billion) including the 500 billion won ($416 million) issued in April.

Headquartered in Korea, Mirae Asset Daewoo now extends the presence to 11 overseas entities in 9 countries. Our overseas entities are strategically situated across 9 countries: the U.S., the U.K., Hong Kong, China, Singapore, Indonesia, Vietnam, Mongolia and Brazil.

We provide a wide range of financial services to our clients such as global brokerage, investment banking, trading, PBS, principal investment and wealth management business.

As strengthening our alliance with clients, we pursue excellence in investment management to help our clients achieve their long-term objectives. The Investment Banking Division (“IBD”) of Mirae Asset Securities (HK) Limited has a broader and clearer view. That focus on providing quality global investment opportunities with the strength of our global partnerships.

This allows us to provide a comprehensive range of bespoke investment solutions to institutional professional clients.

For our global partners, IBD will serve as their gateway to Korea, enabling them to tap the abundance of Korea’s investment capital and to take advantage of the unique investment opportunities offered by one of the world’s high-tech economies.

Corporate Finance

IBD focuses on offering advisory services in capital structures with asset & liability management to private companies. IBD also provides financing activities to companies mainly located in Korea and China, but continually growing within emerging markets. IBD could act as the financial advisor or arranger, mostly advising the companies on financing structure and commercial terms of the investment. On occasions, IBD could also act as placement agent to liaise with companies and potential investors.

Equity Capital Markets

IBD assists in syndication of Korean Initial Public Offerings and other financial issuances, i.e. rights issues, block sales, convertible bonds, bond with warrants or exchangeable bond, to overseas institutional professional investors, mostly in Hong Kong and Singapore. IBD could also get involved in making pitch books and management presentations involving extensive valuation, industry research, capital markets analysis and strategic opportunities to clients from various industries.

Debt Capital Markets

IBD focuses on assisting institutional clients in communicating with foreign clients as a coordinator and executing transactions related to debt financing. This could take the form of Eurobonds or other types of bonds depending on the needs of the client as well as the credit environment, at the time, of issuance and placement. IBD could also advise clients on structuring debt instruments to enhance the possibility of successful placements.

Investment Management

IBD sources potential global investment opportunities using global networks and provide customized investment solutions to institutional professional clients in Korea.
IBD also directly invests in potential transactions after screening and analyzing the transactions by each asset class. These transactions include real estate, aircraft financing, acquisition/leveraged financing and secondary loans.