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Press Release
The interest rate (4.37%) of SK Telecom’s global bond is the lowest among international bonds with seven year expiration terms, issued by private Korean entities.
It is the first international bond issued after the Korean political instability due to the presidential impeachment. This will enhance the international financial market’s confidence in domestic entities.
SK Telecom successfully issued a 300 million US dollar global bond with a seven year expiration term at an interest rate of 4.37% (The U.S. Treasury Bond with seven year expiration term rate, + 118bp) per year in New York. The interest rate of SK Telecom’s global bond is the lowest among international bonds with seven year expiration terms, issued by Korean private entities.
Sung Min Ha, vice-president and head of SK Telecom’s Strategic Planning Group, Jeffrey Shafer, vice-chairman of Citi Group, and Adebayo Ogunlesi, president of CSFB, held a joint ceremony regarding the issuing of the global bond on March 25th, in the CSFB Head Office in New York.
Before the issuance of SK Telecom’s global bond, investment orders amounting to two billion dollars, nearly seven times more than the 300 million dollars, came from 81 investment institutions worldwide. This demonstrated the high interest by overseas investment institutions in the global bond.
An SK Telecom official revealed that the purpose for issuing the global bond is to repay the Yankee bond issued in April 1997, within the seven year expiration term for that bond.
This global bond has great significance because it is the first international bond issued after the Korean political instability due to presidential impeachment. It also breaks the record for the lowest interest rate among international bonds with a seven year expiration term. This will enhance the international financial market’s confidence in domestic entities.
SK Telecom was able to issue the global bond on such favorable conditions because Moody’s and Standard & Poor’s, worldwide credit rating institutions, upgraded SK Telecom’s credit rating to A- and A3. The A3 is the national credit rating of Korea. These upgrades resulted from an affirmative evaluation of SK Telecom’s efforts toward improvement of its corporate governance structure through the appointment of new president Shin Bae Kim, and the restructuring of the board of directors to enhance transparent management.
In order to issue the global bond, SK Telecom carried out road-shows in Hong Kong, Singapore, and New York, that began on March 22nd.
Sung Min Ha, vice-president and head of SK Telecom’s Strategic Planning Group, Jeffrey Shafer, vice-chairman of Citi Group, and Adebayo Ogunlesi, president of CSFB, held a joint ceremony regarding the issuing of the global bond on March 25th, in the CSFB Head Office in New York.
Before the issuance of SK Telecom’s global bond, investment orders amounting to two billion dollars, nearly seven times more than the 300 million dollars, came from 81 investment institutions worldwide. This demonstrated the high interest by overseas investment institutions in the global bond.
An SK Telecom official revealed that the purpose for issuing the global bond is to repay the Yankee bond issued in April 1997, within the seven year expiration term for that bond.
This global bond has great significance because it is the first international bond issued after the Korean political instability due to presidential impeachment. It also breaks the record for the lowest interest rate among international bonds with a seven year expiration term. This will enhance the international financial market’s confidence in domestic entities.
SK Telecom was able to issue the global bond on such favorable conditions because Moody’s and Standard & Poor’s, worldwide credit rating institutions, upgraded SK Telecom’s credit rating to A- and A3. The A3 is the national credit rating of Korea. These upgrades resulted from an affirmative evaluation of SK Telecom’s efforts toward improvement of its corporate governance structure through the appointment of new president Shin Bae Kim, and the restructuring of the board of directors to enhance transparent management.
In order to issue the global bond, SK Telecom carried out road-shows in Hong Kong, Singapore, and New York, that began on March 22nd.