Doosan Bobcat

On August 2, 2019, Doosan Bobcat announced that it had repaid its debt of US$100 million in advance of the due payment date, the second early debt repayment in 2019 alone. After raising some US$1.7 billion through refinancing back in 2014, the company has since repaid US$920 million earlier than scheduled on a total of eight occasions thus far.

As a result, Doosan Bobcat's total debt has decreased by about 57% from US$1.7 billion in 2014 to US$730 million (as of the end of July 2019), with its debt ratio dropping from 105% at the end of 2014 to 68% at present.

Doosan Bobcat began expanding its investment in future growth engines in 2018. In June 2019, it announced its plans to increase its dividend per share for 2019 to 1,200 won. While enhancing new investments and shareholder returns, Doosan Bobcat continues improving its financial structure based on a stable cash flow.

“The latest early repayment is significant in that it shows that Doosan Bobcat has succeeded in strengthening its financial structure through efficient cash management while increasing investments and dividends based on its strong sales performance,” declared an official of Doosan Bobcat. “Based on our robust financial structure, we will expand our business portfolio not just in North America but also in emerging markets; and we will continue to improve our global product competitiveness as a way to lay the groundwork for sustainable growth in the future.”

Meanwhile, Doosan Bobcat has also made great strides in its cash management: On the basis of its high credit rating, the company has acquired a credit line* for the first time since its founding.

*Credit line: A credit line is an arrangement between a financial institution and a company by which the maximum loan amount the latter can borrow repeatedly from the former can be set at any time for a given period without providing any collateral.