 |
Photo courtesy of Yonhap News |
[Alpha Biz= Kim Jisun] HD Korea Shipbuilding & Offshore Engineering (HD KSOE) has successfully priced a large-scale overseas exchangeable bond (EB), attracting strong demand from global investors and finalizing the issuance at approximately KRW 2.4 trillion.
The company announced on April 1 that it will issue $1.55 billion (approximately KRW 2.37 trillion) in unsecured senior foreign currency-denominated exchangeable bonds, maturing on May 4, 2031. The deal marks the largest EB issuance by an Asian company so far this year.
The bonds are exchangeable into approximately 4.53 million common shares of its subsidiary, HD Hyundai Heavy Industries. The exchange price has been set at KRW 523,125 per share, with a zero coupon rate.
The issuance drew approximately $6 billion in orders from around 100 high-quality global investors, reflecting strong confidence in the company’s fundamentals and growth prospects.
The successful deal is expected to enhance HD KSOE’s financial flexibility while allowing it to raise capital at favorable terms without immediate dilution, given the zero-interest structure and equity-linked conversion feature.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
