쌍용건설

- Ssangyong Engineering & Construction issues 30 billion won worth of unwarranted corporate bonds for repayment of borrowings with high interest rates.

- With the Company getting back on track, it regains creditworthiness and can get a fund supply in the market.

- Thus, saving 700 million won worth of financing cost annually (the burden of repayment of borrowings when it finishes the workout procedure.)

Ssangyong Engineering & Construction (President: Kim Suk-joon) becomes the first firm with a record of workout to issue unwarranted corporate bonds. The Company reported that it is issuing 30 billion won worth of unwarranted corporate bonds through Seoul Securities in June. The corporate bonds issued are comprised of 10 billion won worth of 2-year bonds with a yield rate of 7% per annum and 20 billion won worth of 5-year bonds with a yield rate of 8.7%.

The funds thus raised will be used for earlier repayment of borrowings with high interest rates that mature this year, including 13.2 billion worth of guaranteed bills of Woori Bank and KEB, 12.6 billion won worth of loans from Seoul Guarantee Insurance and 4.2 billion won borrowed from other financial institutions.

With this, the Company will be able to save about 700 million won annually in financing expenses and alleviate the burden of repaying borrowings when it finishes the workout procedure. With such earlier repayment of 90% of its short-term borrowings, the Company will enjoy stable cash flow in the future.

A company official said, “Becoming the first firm with a record of workout to issue unwarranted corporate bonds, we can now supply funds from the market. With management getting back on track and creditworthiness drastically enhanced, we will be able to finish the workout procedure earlier.”

After being subject to the workout procedure in March 1999, the Company strove hard to push ahead with internal restructuring and improve the financial structure, posting 132.7 billion won in sales and 55.7 billion won in ordinary profit in 2003.

Additionally, having secured a stable backlog of existing orders worth about 3 trillion won, the Company expects to post about 60 billion won in ordinary profit each year. Its debt ratio will also be drastically improved in the first half of the year from 201% at present.