SeAH Steel Issues 115 Billion KRW Unsecured Bonds to Repay Debt and Secure Operating Funds, Aiming to Strengthen Financial Health

SeAH Steel Corporation is issuing a total of 115 billion KRW in unsecured public bonds series 9-1 75 billion KRW and series 9-2 40 billion KRW on June 25, 2026. The proceeds will be used to repay 100 billion KRW of existing borrowings and 15 billion KRW for operating funds to purchase raw materials such as hot rolled coils, reducing interest burden and improving financial structure.
As of end-Q1 2026, the consolidated debt ratio stood at 69.7%, up 6.8%p from end-2025, and the standalone debt ratio was 64.7%. The debt dependency ratio was 23.1% consolidated and 21.8% standalone. The company maintains an A+ stable credit rating. It bears joint liability for pre-demerger debts, but the surviving entity's sound financials make actualization unlikely. There are contingent liabilities including a wage lawsuit.
In Q1 2026, the company disposed of 36,200 treasury shares, generating approximately 4.2 billion KRW in cash inflow, reflecting shareholder return policy.
[AI Summary]SeAH Steel's 115 billion KRW bond issuance supports debt repayment and working capital, enhancing financial stability. However, rising debt ratios, US tariff risks, and weak global steel demand pose challenges. While short-term liquidity risk is limited given its stable credit rating and market position, delayed profitability recovery could increase financial burdens.