Major construction companies move to repay bonds in cash ahead of maturities next month
Major construction companies, including Hyundai Engineering & Construction, GS Engineering & Construction, and DL E&C, are moving toward repaying their bonds in cash ahead of maturities next month. The decision reportedly reflects the increased burden of funding costs following recent interest rate rises.
Major construction companies are poised to repay bonds in cash ahead of maturities next month. The companies involved include Hyundai Engineering & Construction, GS Engineering & Construction, and DL E&C. Reports also mentioned changes in companies’ short-term funding conditions amid a recent sharp rise in global interest rates.
Hyundai Engineering & Construction (AA-) has bonds coming due on 29, totaling 1,300 billion won. GS Engineering & Construction (A) holds bonds totaling 3 billion won, which mature on 500. DL E&C (AA-) is also reported to have bonds maturing next month.
Reports said there was also a view that the companies had sufficient capacity to repay the bonds because the amounts were not large. The increase in funding costs amid rising global interest rates was also cited as a factor that influenced the repayment decisions. The specific repayment methods and any additional refinancing plans must be confirmed through disclosures by each company.
Some construction companies are choosing to repay maturing bonds in cash. Other companies are reportedly continuing to consider refinancing before maturity or managing liquidity. The maturity schedule and whether the bonds are repaid directly affect short-term cash management.
Sources: 연합인포맥스
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