 |
Photo = Yonhap news |
[Alpha Biz= Paul Lee] HD Hyundai Heavy Industries, the intermediate holding company of HD Hyundai Group, has decided to issue 600 billion KRW worth of exchangeable bonds (EB). NH Investment & Securities and private equity firm IMM Credit Solutions (ICS) will each invest 300 billion KRW.
On February 25, HD Hyundai Heavy Industries announced that it had decided to issue the first tranche of 600 billion KRW in EB. These bonds will be issued with no interest and will mature in five years.
The exchangeable bonds are linked to 1.73 million shares of HD Hyundai Heavy Industries, representing 1.9% of the company's total shares.
Investors, including NH Investment & Securities and ICS, will be able to exchange their bonds for common shares of HD Hyundai Heavy Industries between February 31 and February 2030.
The exchange price has been set at 346,705 KRW, which is 12.57% higher than the current stock price of 308,000 KRW. Additionally, investors will have the option to request early repayment of the principal starting two years after the bond issuance.
HD Hyundai Heavy Industries plans to use the funds raised from this issuance for research and development and investments in areas such as hydrogen fuel cells, small modular reactors (SMR), and offshore wind power. The investment by NH Investment & Securities and ICS is seen as a bet on HD Hyundai Heavy Industries' future growth plans and the potential for the company's stock price to rise.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
