Hyundai E&C Issues 500 Billion Won Convertible Bonds with 5-Year Maturity

Hyundai Engineering & Construction issued 500 billion won in convertible bonds on the 7th, the company announced. The bonds carry a 0% coupon rate and 0% maturity rate with a 5-year term. The conversion price was set at 150,607 won, reflecting a 5% premium to the stock price at the time of the board resolution, and the company stated that the conversion premium expanded further following subsequent stock price adjustments. The issuance aims to strengthen financial stability and enhance mid- to long-term credit competitiveness without interest cost burdens.

Hyundai E&C Sets Conversion Price at 150,607 Won with No Put Option

The convertible bonds were issued without early redemption rights (put options) or conversion price adjustment (refixing) clauses. This structure allows Hyundai E&C to operate the funds stably for at least five years without separate interest expense burdens, the company explained.

Convertible bonds with high premium rates and no refixing conditions are generally considered less attractive to investors in capital markets. Despite this, multiple institutional investors actively participated in the issuance, demonstrating expectations for future corporate value growth, the company added.

CFO Confirms Strategic Allocation to Nuclear and SMR Projects

Lee Hyung-seok, CFO and head of Hyundai E&C's finance division, stated: "The successful issuance of these convertible bonds confirms the market's trust in Hyundai E&C's future growth strategy and financial stability. We will strategically allocate the secured funds to future growth businesses such as nuclear power and SMR, while enhancing mid- to long-term corporate value based on stable financial structure and credit competitiveness."

The company plans to use the proceeds to strengthen financial stability and improve mid- to long-term credit competitiveness.

FAQ

What terms did Hyundai E&C set for its 500 billion won convertible bonds?

Hyundai E&C issued the bonds with a 0% coupon rate, 0% maturity rate, and a 5-year maturity. The conversion price was set at 150,607 won with a 5% premium to the board resolution stock price, and the bonds include no put options or refixing clauses.

How will Hyundai E&C use the funds from the convertible bond issuance?

According to CFO Lee Hyung-seok, the company will strategically allocate the funds to future growth businesses including nuclear power and small modular reactor (SMR) projects, while strengthening financial stability and credit competitiveness.