이 기사는 2022년 02월 16일 08:09 thebell 에 표출된 기사입니다.

SK Group’s holding entity SK Inc has attracted strong demand from instutitional investors during its bookbuilding process to issue 300 billion won ($250 million) in bonds.

SK launched its bookbuilding process on Monday to raise 300 billion won in its bond offering, which included 150 billion won of 3-year bonds, 100 billion won of 5-year bonds and 50 billion won of 10-year bonds. Each bonds’ proposed rates were a maximum of 30 basis points above average interest rates rated by domestic credit rating agencies. Samsung Securities is managing the sale, with SK Securities, Hana Financial Investment, Shinhan Investment, Kiwoom Securities, Shinyoung Securities and Daishin Securities participating in a syndicate alongside Samsung Securities.

The deal was more than two times oversubscribed thanks to the company’s solid credit rating. The 3-year bonds drew bids worth 350 billion won, with 5-year bonds garnering 260 billion won and 10-year bonds gathering 110 billion won, recording a competition rate of 2.4:1. SK is expected to consider increasing the size of the issue to up to 400 billion won.

Despite strong demand, the bonds will likely be issued at higher yields than average yields evaluated by domestic credit rating agencies. Bond yields of AA-rated issuers that launched bookbuilding sessions earlier this month were equal to or higher than yields evaluated by credit rating agencies, except for S-Oil.

Mirae Asset Global Investments, which held its bookbuilding process last week, ended up garnering 110 billion won in bids in its 150 billion won 3-year bond sale.

SK proposed yields ranging from minus 30 to plus 30 basis points of average yields evaluated by credit rating agencies for bonds with 3-year, 5-year and 10-year maturities, respectively, which are wider than yields offered in November 2021.

The bonds are expected to be priced at 2.967%, 3.084% and 3.178% respectively, which are 7 basis points higher than the average yields evaluated by credit rating agencies for 3-year and 5-year bonds and equal to the average yield for 10-year bonds.

According to data from KIS Pricing, average yields for SK’s bonds with 3-year, 5-year and 10-year maturities were 2.897%, 3.014% and 3.178% respectively last Friday.

The proceeds from the issuance will be used to refinance existing debts, with the company’s commercial papers and corporate bonds coming due later this month and early next March. (Reporting by Ji-won Kim)