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SK E&C ups debt issuance volume to $140 mn on strong investor demand

2018.04.10 13:22:29 | 2018.04.10 13:24:20
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South Korea’s SK Engineering & Construction Co. said on Monday it has decided to increase the size of its planned corporate debt issuance by nearly two times to 150 billion won ($140 million) in response to strong investor demand.

The decision comes after the company’s first 3-year bond this year drew 694 billion won during a book building session last week, making it oversubscribed by 8.7 times. Unexpected demand from asset managers and other institutional investors drove the surge, the company said.

“This heated demand for our corporate bonds adds symbolic credential to the SK name as we’ve made efforts to build a stable base for organic growth by focusing our business model on profitable and value-added areas,” said an official at the company.

The new bonds with credit rating of A- will be issued on Friday with a maturity of three years. The coupon rate is expected to be down 0.75 percentage point from the average rate proposed by private bond evaluators.

SK E&C clinched $2.5 billion worth of orders this year from overseas markets including Hong Kong and Vietnam and 478.5 billion won at home. The unlisted builder achieved the 200 billion won mark in operating profit in the last two consecutive years.

By Kim Gang-rae and Lee Ha-yeon

[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]

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