SK Hynix Aims to Raise About $1 Billion in Dollar Deal -SourcesSK Hynix Aims to Raise About $1 Billion in Dollar Deal -Sources

According to three persons familiar with the issue, SK Hynix, the world’s second-largest memory chip maker based in South Korea, plans to raise around $1 billion via a dollar bond deal.

According to a statement, SK Hynix will determine the precise amount to be released later depending on market circumstances.

According to a document seen by Reuters, the corporation has engaged the cooperation of eight investment banks for this project, with prospective tenors of three and five years for the bond issue.

Through the first three quarters of 2023, SK Hynix had total operational losses of 8.1 trillion won, which is equivalent to $6.19 billion. This was mostly the result of a persistent decline in demand for commodity chips, which are used in electronic devices such as computers and smartphones.

On the other hand, there is an expectation that the costs of memory chips would increase this year, which may be related to the fact that chip makers have reduced their manufacturing. While this is going on, SK Hynix is concentrating its efforts on maintaining its position in the high bandwidth memory (HBM) semiconductor market, which is essential for generative artificial intelligence.

Earlier in the month of April, SK Hynix was able to successfully raise $1.7 billion via the issuing of a convertible bond. This was the first time in ten years that the firm has pursued this particular sort of bond issuance.

(Please take note that the indicated currency rate is $1 = 1,308.2000 won.)

The following information was reported by Scott Murdoch in Sydney and Joyce Lee in Seoul; the editing was done by Muralikumar Anantharaman and Christian Schmollinger.

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