Hyundai E&C to raise 500 billion won through convertible bonds

Hyundai E&C plans to strengthen its foothold in the global energy sector by issuing 500 billion won ($329 million) worth of privately placed convertible bonds.

The company said Wednesday it approved the issuance at an extraordinary board meeting held Tuesday.

The bond issuance is a strategic move to secure funding ahead of anticipated growth in future energy markets, including nuclear power plants and small modular reactors.

The bonds carry a zero coupon rate and zero yield to maturity, with a five-year term. The conversion price will be set at a 15 percent premium to the reference share price — roughly 23 percent above Tuesday's closing price of 122,300 won. The capital raise is expected to improve the company's financial health.

If conversion rights are exercised, the resulting reduction in the debt-to-equity ratio is expected to support a credit rating upgrade, which in turn would bolster the company's competitiveness in winning large-scale global projects and securing financing.

Hyundai E&C said it aims to build greater investment capacity to respond flexibly to business opportunities arising from the expansion of the nuclear and new energy markets, further solidifying its future growth engines.

The company is pushing to become an "energy transition leader" by expanding across the entire energy ecosystem — spanning production, transmission and consumption.