SK hynix has successfully attracted trillions of won in funds in its corporate bond demand forecast, achieving a successful fundraising campaign.

According to investment banking industry sources on April 1, SK hynix (AA) successfully raised a total of 2.86 trillion won (approximately US$2.11 billion) in funds through demand forecasts for the issuance of corporate bonds totaling 380 billion won, including 170 billion won for 3-year bonds, 150 billion won for 5-year bonds, and 60 billion won for 7-year bonds. Orders amounted to 1.36 trillion won for the 3-year bonds, 1.08 trillion won for the 5-year bonds, and 420 billion won for the 7-year bonds.

SK hynix offered interest rates adjusted by -30 basis points to +30 basis points compared to the evaluation rate provided by individual private bond rating agencies. For the 3-year bonds, the interest rate was set at -13 basis points, for the 5-year bonds at -17 basis points, and for the 7-year bonds at -23 basis points, with all issuance volumes fully subscribed.

Since SK hynix embarked on public bond issuance, the company successfully raised close to 3 trillion won in funds. As a result, it is forecast that it can easily achieve its maximum increase target of 750 billion won. The proceeds from the issuance will be entirely used for refinancing maturing public bonds.

SK hynix holds a credit rating of “AA (Stable).” The Korea Credit Rating stated, “There has been a significant turnaround in the memory market, with memory fixed prices starting to rise since the second half of last year. This year, we expect to benefit significantly from the improvement in business conditions based on the competitiveness of AI-focused DRAM products, leading to continued recovery in operating performance compared to our competitors.”

By: DocMemory
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