SK Hynix Attracts 25 Trillion Won in Demand Forecast

700 Billion Raised... Considering Up to 1.4 Trillion Increase

[Asia Economy Reporter Hwang Yoon-joo] SK Hynix (AA) succeeded in attracting strong demand in its corporate bond subscription. While aiming to raise 700 billion KRW, more than 2.5 trillion KRW was gathered. Despite recording a large-scale loss in the fourth quarter of last year, institutional investors showed great interest based on the outlook that long-term demand for memory semiconductors will grow.

[Image source=Yonhap News]

According to the investment banking (IB) industry on the 7th, SK Hynix received orders totaling 2.585 trillion KRW in the demand forecast.

For the 3-year bonds, 280 billion KRW was planned to be raised, but 1.31 trillion KRW was ordered; for the 5-year bonds, 280 billion KRW was planned, but 1.03 trillion KRW was ordered; for the 7-year bonds, 60 billion KRW was planned, but 150 billion KRW was ordered; and for the 10-year bonds, 80 billion KRW was planned, but 95 billion KRW was ordered.

Based on the average interest rate of individual private bond evaluation companies (market average rate), a rate band of minus (-) 30 basis points (1bp = 0.01 percentage points) to plus 30 basis points was presented. Orders were filled at -35bp for 3-year bonds, -40bp for 5-year bonds, -32bp for 7-year bonds, and -2bp for 10-year bonds.

SK Hynix is considering an additional issuance of up to 1.4 trillion KRW. It explained that this is for refinancing corporate bonds that are maturing.

Meanwhile, SK Hynix recorded sales of 7.6986 trillion KRW in the fourth quarter of last year, turning to an operating loss of 1.7012 trillion KRW.