South Korean mobile operator SK Telecom has launched a W400bn (US$354m) hybrid bonds issue.
Daewoo Securities and Barclays worked on the transaction, which will help improve the company’s financial profile, a spokesperson told…
South Korean mobile operator SK Telecom has launched a W400bn (US$354m) hybrid bonds issue.
Daewoo Securities and Barclays worked on the transaction, which will help improve the company’s financial profile, a spokesperson told TelecomFinance.
Moody’s said that the issuance is positive and the ratings agency expects SK to use the proceeds to refinance its existing debt.
The bonds represents 6% of SK’s reported consolidated debt, which stood at W6.67 trillion (US$5.9bn) as of March 2013.
“The issuance will not have any immediate impact on its A3 rating and negative outlook, given that the degree of improvement is modest,” Moody’s commented.
The agency added that it “sees uncertainty over whether the company can improve its financial profile to the level consistent with the current rating level, given the heightened competition in Korea’s telecommunications market”.
In January, the Korean telco issued A$300m in 4.75% notes due 2017, which were drawn from its US$3bn global medium-term notes programme announced in October last year.
The programme was the second one registered in weeks, as the company has been looking to reduce its high levels of debt.
