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REUTERS
Seoul, Sept 28: Samsung Electronics Co Ltd plans to tap the local market to sell its second jumbo bond issue in October, market sources said on Monday added that the company wants to sell 500 billion won worth on October 16, less than a month after it sold another 500 billion won in three-year bonds last week.
"We have information that Samsung plans to sell another 500 billion won worth of bonds during October," said one local fund manager, who declined to be identified.
Samsung Electronics officials declined to confirm the plan, adding that issuing corporate bonds was an "on-going process" in terms of its financing activities.
Samsung had to cut by half its previous plan to issue one trillion won in bonds after the government "advised" the company to reduce the size to stabilise market yields.
Samsung Electronics' original plan, if realised, would have been the single largest corporate issue on the local market.
An official at Samsung Securities, a sister firm of Samsung Electronics, said the chipmaking firm was in negotiations with investors to sell 500 billion won of new corporate bonds.
"The company is expected to submit its registration to the Securities Supervisory Board soon." he said and added that the proceeds would be used to pay back maturing dollar debt.
Samsung's 500 billion won worth of bonds were sold at 12.80 per cent on issue and have since traded at around 12.45 per cent in the secondary market, brokers said.
Samsung Electronics, the flagship company of South Korea's Samsung Group is the world's largest maker of computer memory chips.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
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