SK Receives Nearly 1 Trillion Won in Orders in Corporate Bond Bookbuilding

(Seoul=Yonhap Infomax) Eun Byul Yun – SK Co., Ltd. (KRX: 034730), a major South Korean conglomerate, attracted nearly 1 trillion won ($845 million) in orders during its latest corporate bond bookbuilding process.

According to investment banking industry sources on the 20th, SK targeted a 250 billion won ($211 million) issuance in its corporate bond bookbuilding held on the same day, but received total purchase orders amounting to 920 billion won ($778 million).

For the three-year tranche, SK sought to raise 150 billion won ($127 million) and received 600 billion won ($507 million) in orders. The five-year tranche, with a target of 100 billion won ($84 million), attracted 320 billion won ($270 million) in bids.

The credit spreads were set at plus 1 basis point for the three-year bonds and plus 3 basis points for the five-year bonds, relative to the respective market average yields.

Previously, the indicative yield bands were presented at ±30 basis points over the individual market average yields for each maturity. The maximum issuance limit was set at 400 billion won ($338 million).

Korea Ratings, Korea Investors Service, and NICE Investors Service assigned SK’s corporate bonds a credit rating of ‘AA+ (Stable)’.

All proceeds from this issuance will be used to refinance existing commercial paper (CP), a short-term debt instrument commonly used by South Korean companies for liquidity management.

ebyun@yna.co.kr

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