SK Ecoplant attracted 987 billion won in orders for its 100 billion won corporate bond offering during demand forecasting conducted on '22일', achieving a 9.87-times oversubscription ratio according to investment banking industry sources. The A-rated company's strong performance stemmed from Q1 revenue growth of 99.3% year-over-year to 4.8997 trillion won and operating profit surge to 931.4 billion won from 68.4 billion won in the prior-year period, driven by expanded semiconductor-related construction orders and consolidated subsidiary results. Proceeds will refinance 100 billion won of the 123 billion won in public bonds maturing on '31일', with shortfall covered by internal funds.
SK Ecoplant Attracts 987 Billion Won in Bond Orders Across Three Tranches
The 1-year tranche targeting 50 billion won received 290 billion won in orders, the 1.5-year tranche targeting 30 billion won drew 464 billion won, and the 2-year tranche targeting 20 billion won garnered 233 billion won in demand. Spreads settled at 36 basis points below individual corporate bond average yields for the 1-year tranche, 70 basis points below for the 1.5-year tranche, and 61 basis points below for the 2-year tranche on a募集額 basis. The company had proposed a希望 rate band of ±30 basis points versus individual corporate bond average yields. The maximum upsizing limit is set at a combined 200 billion won. SK Securities, Korea Investment & Securities, Kiwoom Securities, NH Investment & Securities, Shinhan Investment & Securities, and Hana Securities serve as lead underwriters.
Company Allocates Proceeds to Refinance Maturing Bonds on '31일' and Potential Additional Maturities
SK Ecoplant plans to refinance 100 billion won of the 123 billion won in public corporate bonds maturing on '31일', with the shortfall covered by internal funds. If the offering is upsized, additional proceeds will be deployed to refinance 36 billion won in corporate bonds maturing on '25일' and 41 billion won maturing on '내달 18일'. The company stated it is reviewing an upsized issuance based on demand forecasting results.
Q1 Revenue Surges 99.3% Year-Over-Year to 4.8997 Trillion Won
SK Ecoplant recorded consolidated revenue of 4.8997 trillion won in Q1, up 99.3% from the prior-year period. The increase reflected expanded orders for semiconductor-related construction projects and the full consolidation of subsidiary results from SK Airplus and Essencor. Operating profit reached 931.4 billion won during the same period, compared to 68.4 billion won a year earlier. The company's consolidated debt-to-equity ratio stood at 176.2% at the end of Q1, down from 192.0% at year-end.
FAQ
What was the oversubscription ratio for SK Ecoplant's corporate bond offering on '22일'?
SK Ecoplant attracted 987 billion won in orders for its 100 billion won corporate bond offering, achieving a 9.87-times oversubscription ratio during demand forecasting conducted on '22일'.
How will SK Ecoplant use the proceeds from the bond issuance?
The company will use proceeds to refinance 100 billion won of the 123 billion won in public corporate bonds maturing on '31일'. If the offering is upsized, additional funds will refinance 36 billion won maturing on '25일' and 41 billion won maturing on '내달 18일'.
What drove SK Ecoplant's Q1 revenue growth of 99.3% year-over-year?
The revenue increase to 4.8997 trillion won resulted from expanded semiconductor-related construction orders and the full consolidation of subsidiary results from SK Airplus and Essencor.
