Hyundai Engineering & Construction: 5,000decision to issue privately placed convertible bonds worth hundreds of millions of won

Hyundai Engineering & Construction disclosed that it held an extraordinary board meeting on 6 month 9 day and decided to issue 5,000privately placed convertible bonds worth hundreds of millions of won. The purpose of the issuance is to secure operating funds. The bonds will be issued through a private placement.

The convertible bonds’ coupon rate and maturity interest rate have been set at 0%. The maturity term is 5 years. The conversion right may be exercised at the specified conversion price.

The conversion price was disclosed as 15ten thousand 607 won. The company said it set the conversion price at a 15% premium to the reference share price. The conversion price applies when the bonds are converted into shares.

The company explained that the conversion price was 122,300approximately higher than the closing price that day.23The company said that exercising the conversion rights could improve its debt ratio. It added that this would help raise its credit rating.

The funds raised will be invested in new energy businesses, including offshore wind power, solar power, and small modular reactors (SMRs). The company said the funds were strategically secured to proactively respond to the expansion of the future energy market. It said the purpose was to respond flexibly to business opportunities related to nuclear power and new energy.

A company official said the funds would be used to solidify the company’s future growth engines. The company explained that the funds would help it secure large-scale global project orders and enhance its competitiveness in financing. The offering was presented as a measure to secure operating funds and manage the financial structure.