SeAH Steel Issues 115 Billion KRW in 9th Series Unsecured Public Bonds for Debt Repayment and Working Capital
SeAH Steel issues unsecured public bonds totaling 115 billion KRW: 75 billion KRW for Series 9-1 with 2-year maturity and 4.625% coupon, and 40 billion KRW for Series 9-2 with 3-year maturity and 4.729% coupon.
Proceeds of 60 billion KRW will be used to repay existing bonds and loans, 15 billion KRW for raw material purchases from POSCO and others, with the remainder funded internally.
As of end-Q1 2026, the company's standalone debt ratio was 64.68% and loan dependency 21.84%. During Q1 2026, it disposed of 36,200 treasury shares worth 4.19 billion KRW as a shareholder return.
The bonds are rated A+ with stable outlook by KIS and NICE, and the trust deed includes financial covenants such as maintaining a debt ratio below 300% and restrictions on asset disposals.
[AI Summary]The bond issuance by SeAH Steel avoids equity dilution and aims to refinance existing debt and secure working capital, but the majority of funds are used for debt repayment rather than growth investments, reflecting a focus on financial stability. Headwinds from the construction and steel market slowdown, along with US tariff policy uncertainty, may weigh on earnings and warrant investor caution.