South Korea’s leading mobile carrier SK Telecom Co. that sold its debts in the overseas market for the first time in six years successfully raised $500 million in five-year global bonds before the impending key interest rate hike.
The company said on Tuesday it secured $500 million in five-year global bonds at a coupon yield of 3.75 percent, which was 22.5 basis points lower than its original pricing yield thanks to voracious appetite for its debts from foreign investors.
An official from the company said that the company’s $500 million worth bond offering invited overwhelming demand of more than $3.3 billion during its book-building session. It was the highest demand for corporate bonds issued by Korean companies this year, according to the firm.
The company said that despite market jitters caused by the global trade frictions and monetary tightening trend, it could win the hearts of investors during its global bond sale, which was the first in six years, thanks to the company’s high creditworthiness, strong growth potential and stable cash flow. The company’s last global bond sale was in 2012.
SK Telecom will use the proceeds from the latest debt sale to repay debts, which would also help it improve financial soundness with its diversified debt maturity profile.
Shares of SKT closed Tuesday 1.06 percent at 232,500 won.
By Seo Dong-chul and Choi Mira
[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]