Move expected to improve financial health, support credit rating upgrade; proceeds earmarked for nuclear and SMR project investment

Hyundai E&C's headquarters. [Hyundai E&C]
Hyundai E&C's headquarters. [Hyundai E&C]

Hyundai E&C plans to strengthen its foothold in the global energy sector by issuing 500 billion won ($329 million) in privately placed convertible bonds.

The company said Wednesday it approved the issuance at an extraordinary board meeting held Tuesday. The fundraising is aimed at securing strategic capital to get ahead of expanding opportunities in future energy markets, including nuclear power plants and small modular reactors.

The bonds carry a zero coupon rate and zero yield to maturity, with a five-year term. The conversion price will be set at a 15 percent premium to the reference share price — roughly 23 percent above Tuesday's closing price of 122,300 won.

The capital raise is expected to improve Hyundai E&C's financial health. If conversion rights are exercised, the resulting reduction in the debt ratio could support a credit rating upgrade, which the company said would in turn strengthen its competitiveness in winning large-scale global projects and securing financing.

Hyundai E&C said it would use the additional investment capacity to respond flexibly to a range of business opportunities arising from the expansion of nuclear and new energy markets, further cementing its future growth engines.

Meanwhile, the company is pursuing a broader push to become an "energy transition leader," expanding its business across the full energy ecosystem — from production and transmission to consumption.


lucky@heraldcorp.com