Paradise Co. has decided to postpone the issuance of its three-year bonds “due to increased volatility in the financial market at home and abroad,” according to a company announcement on Tuesday.
Last week, the South Korean casino operator submitted an application with financial authorities to sell KRW 100 billion ($85.1 million) worth of three-year bonds, in its first ever bond sale.
However, a hike in borrowing rates saw the company postpone its sale until market conditions improve.
According to Pulse News Korea, an unnamed official from the investment bank industry said the company may have made the decision to avoid adverse effects in case it fails to raise enough funds.
The company had planned to use the proceeds of the bond sale to increase the capital of its subsidiary Paradise Segasammy Co. that manages casino business in Yeongjong Island in Incheon, Gyeonggi.