HD Korea Shipbuilding Sells $1.55 Billion of Exchangeable Bonds

HD Korea Shipbuilding & Offshore Engineering raised $1.55 billion via exchangeable bonds into shares of its unit HD Hyundai Heavy Industries, about $50 million more than initially planned. The deal is a sizeable equity-linked financing for the group and may modestly affect the parent and unit's equity and credit metrics, but is routine market activity.

Analysis

HD Korea Shipbuilding & Offshore Engineering raised $1.55 billion via exchangeable bonds into shares of its unit HD Hyundai Heavy Industries, about $50 million more than initially planned. The deal is a sizeable equity-linked financing for the group and may modestly affect the parent and unit's equity and credit metrics, but is routine market activity.