Chip maker Hynix to issue bonds worth $500 million

May 6, 2010
South Korean employees of Hynix Semiconductor walk past a logo of the company at a branch in Seoul in 2009. South Korea's Hynix Semiconductor, the world's second largest chip maker, said Thursday it would issue 500 million dollars of convertible bonds overseas, giving it a chance to expand as chip prices rise.

South Korea's Hynix Semiconductor, the world's second largest chip maker, said Thursday it would issue 500 million dollars of convertible bonds overseas, giving it a chance to expand as chip prices rise.

The hi-tech giant said its board approved the issuance this year of 557.9 billion won in five-year convertible bonds to secure operating funds and expand production capacity.

Funds raised "can be used for various ways, including refinancing convertible bonds issued earlier or for capital spending", spokeswoman Park Seong-Ae told Dow Jones Newswires, adding this had still to be decided.

Park said the company would not use the funds to build new memory chip plants despite robust demand for personal computers and smartphones, which have lifted chip prices.

In December 2007 Hynix issued 583 million dollars of convertible bonds to finance expansion. It has earmarked some 2.3 trillion won for capital spending this year, up from one trillion last year.

The company posted record quarterly sales in the three months to March on the back of strong demand, achieving a third straight quarter in the black.

Creditors have controlled Hynix since they rescued it with 4.6 billion dollars in 2001 and 2002, swapping the debt for shares.

They raised 813.5 million dollars by selling 6.67 percent of their stake in a block sale in March after failing to find a buyer for a major stake in the .

Explore further: Creditors of S.Korea's Hynix sell 813 million dollar stake

Related Stories

SKorea's Hynix swings to profit as chip industry recovers

January 21, 2010

South Korea's Hynix Semiconductor said Thursday it swung to a net profit in the fourth quarter, following a loss in the period the year earlier, in a further sign that the global chip industry is recovering from a two-year ...

S.Korea's Hynix notches record sales

April 22, 2010

South Korea's Hynix Semiconductor said Thursday it posted record quarterly sales in the three months to March on the back of strong demand, achieving a third straight quarter in the black.

Hynix reports sixth straight quarterly loss

April 24, 2009

South Korea's Hynix Semiconductor, the world's second-largest computer memory chipmaker, Friday reported a sixth straight quarterly loss due to weak chip prices sparked by a global recession.

SKorea's Hyosung group bids for Hynix: report

September 22, 2009

A minor business conglomerate in South Korea looks set to buy a major stake in the world's second biggest memory chip maker after becoming the only firm to submit a bid, a report said Tuesday.

SKorea's Hynix finally swings to profit

October 23, 2009

South Korea's Hynix Semiconductor, the world's second largest memory chip maker, Friday announced a profit for the third quarter after seven straight quarters of losses.

Recommended for you

Samsung to disable Note 7 phones in recall effort

December 9, 2016

Samsung announced Friday it would disable its Galaxy Note 7 smartphones in the US market to force remaining owners to stop using the devices, which were recalled for safety reasons.

Swiss unveil stratospheric solar plane

December 7, 2016

Just months after two Swiss pilots completed a historic round-the-world trip in a Sun-powered plane, another Swiss adventurer on Wednesday unveiled a solar plane aimed at reaching the stratosphere.

Solar panels repay their energy 'debt': study

December 6, 2016

The climate-friendly electricity generated by solar panels in the past 40 years has all but cancelled out the polluting energy used to produce them, a study said Tuesday.

0 comments

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.