[Asia Economy Reporter Park Soyeon] SK Innovation's U.S. battery subsidiary, SK Battery America, has successfully issued eurobonds worth $1 billion.
According to the IB industry on the 20th, SK Battery America succeeded in issuing SK Innovation guaranteed U.S. dollar green bonds worth $1 billion on the 19th (local time). The bonds consist of $300 million with a 3-year maturity and $700 million with a 5-year maturity.
This issuance marks the first global green bond issuance by an SK Innovation affiliate, reflecting recent ESG and eco-friendly trends.
In the demand forecast, the 3-year bonds received orders totaling $3.75 billion from 215 institutions. By region, 80% were from Asia and 20% from Europe. The 5-year bonds received orders totaling $5.25 billion from 285 institutions, with 85% from Asia and 15% from Europe.
Among the final investors who underwrote the bonds, 52.1% of the 3-year bonds and 61.1% of the 5-year bonds were ESG-related investors. The total valid orders in the demand forecast exceeded approximately $9 billion, marking the largest order amount ever for Korean 'Reg S' bonds.
The issuance yields were 1.714% (Coupon 1.625%) for the 3-year bonds and 2.218% (Coupon 2.125%) for the 5-year bonds. Based on strong confidence in the growth potential of the battery business and the Green Initiative, the final yields were set 45 basis points (1bp=0.01%) lower than the initial target yields presented to investors for both the 3-year and 5-year bonds.
An industry official evaluated, "Despite an unfavorable issuance environment due to SK Innovation's credit rating downgrade and U.S. litigation issues, high-quality investors actively participated."
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