HD Korea Shipbuilding & Offshore Engineering Embraces Innovation with Exchangeable Bonds
Key Ideas
- HD Korea Shipbuilding & Offshore Engineering issues 600 billion won exchangeable bonds to advance investments in hydrogen fuel cells, SMRs, and offshore wind power.
- NH Investment & Securities and IMM Credit Solution commit 300 billion won each to support the bond issuance.
- Investors can exchange bonds for HD Hyundai Heavy Industries stock at a premium price and have a put option for early repayment of principal.
- The strategic move aims to position the company as a key player in innovative energy technologies while leveraging its existing holdings and ensuring investor security.
HD Korea Shipbuilding & Offshore Engineering, an intermediate holding company of HD Hyundai Group, announced the issuance of 600 billion won exchangeable bonds to boost investments in hydrogen fuel cells, SMRs, and offshore wind power. The bonds, maturing in five years with no interest, can be exchanged for HD Hyundai Heavy Industries stock. NH Investment & Securities and IMM Credit Solution are key investors in this move. Investors have the option to exchange bonds for stock from March 31 to February 2030 at a premium price. A put option provides investor security by allowing early principal repayment. The company's goal is to lead in innovative energy technologies by directing the raised funds towards research and development. This strategic financial move enables leveraging existing holdings, ensuring capital for growth, and enhancing investor appeal through security measures.