SK Broadband Co. has successfully issued global bonds worth US$300 million (336.15 billion won).
According to SK Broadband on August 8, the company recently carried out a survey of global institutional investors on demand estimation, and the bonds drew US$2 billion (2.24 trillion won) for a subscription of US$300 million (336.15 billion won). With high popularity, an additional interest rate of 1.175 percent, which is 0.275 percent points than the initial interest rate offered, is added. The final interest rate of issuance stands at 3.994 percent and the coupon interest rate is 3.875 percent. The level of interest rates is similar to the one of SK Telecom Co. which issued global bonds earlier this year.
Out of 125 institutions which participated in the survey on demand forecasts on the 6th, Asia and Europe accounted for 85 percent and 15 percent, respectively. By type of institution, asset management companies accounted for 73 percent of the total, followed by banks with 17 percent and insurance companies with 10 percent. The global bonds will be listed on the Singapore Exchange (SGX) after the payment on the 13th.
Global credit rating agency Standard & Poor's gave the US dollar denominated senior plain bond a credit rating of A-, which means stable. S&P said, “SK Broadband pursues the same growth strategy with SK Telecom and perform a unified role. The credit rating reflects the company’s outstanding status in the market and stable cash flows from operating activities."
SK Broadband raised a considerable amount of money by issuing the first global bonds in 2013. The latest global bonds were issued to renew global bonds that will fall due in October. Citigroup Global Markets Korea Securities, BNP Paribas and HSBC will be in charge of issuance of the bonds.