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Press Release
Issues exchange bond at a Premium of 25% and a coupon rate of 0% (1.25% of yield to maturity)
Contributes to enhancement of the international financial market’s confidence in domestic entities
SK Telecom announced on May 24th that the company successfully issued a 300 million US dollar international exchange bond in London.
In spite of fact that the world’s stock market is in a slow-down, and international interest rates have gone up remarkably, SK Telecom issued the exchange bond at a 25% Premium and a coupon rate of 0% (1.25% of yield to maturity). The issuance of the bond on such favorable conditions demonstrates that SK Telecom has been widely recognized as one of the leading global telecom companies in the international marketplace.
In addition, despite the unfavorable economic environment in Korea, this will greatly contribute to enhancing the international financial market’s confidence in domestic entities.
The stock market generally reacts unfavorably to entities after they issue EBs or CBs. However, SK Telecom’s stock price went up as of May 24th at 2:30 pm, compared to the KOSPI. This means that the market is reacting favorably toward SK Telecom because it has kept its promises with the market.
An SK Telecom official revealed that the purpose for issuing the exchange bond is to purchase about 2% of SK Telecom’s treasury stock from the stock market.
In spite of fact that the world’s stock market is in a slow-down, and international interest rates have gone up remarkably, SK Telecom issued the exchange bond at a 25% Premium and a coupon rate of 0% (1.25% of yield to maturity). The issuance of the bond on such favorable conditions demonstrates that SK Telecom has been widely recognized as one of the leading global telecom companies in the international marketplace.
In addition, despite the unfavorable economic environment in Korea, this will greatly contribute to enhancing the international financial market’s confidence in domestic entities.
The stock market generally reacts unfavorably to entities after they issue EBs or CBs. However, SK Telecom’s stock price went up as of May 24th at 2:30 pm, compared to the KOSPI. This means that the market is reacting favorably toward SK Telecom because it has kept its promises with the market.
An SK Telecom official revealed that the purpose for issuing the exchange bond is to purchase about 2% of SK Telecom’s treasury stock from the stock market.