"Following Private Placement Bonds, P-CBOs..." SK Nexilis Broadens Its Funding Channels [fn Market Watch]

[Financial News] SK Group's copper foil manufacturer SK Nexilis has turned to Primary Collateralized Bond Obligations (P-CBOs) for funding after issuing private placement bonds. Having tapped the private placement bond market last year and now utilizing P-CBOs, the company is broadening its funding channels.
According to the bond market on the 29th, SK Nexilis recently issued a three-year P-CBO worth KRW 100 billion. The bond carries an annual coupon rate of 5.448%.
In March last year, SK Nexilis also issued three-year private placement bonds worth KRW 40 billion at an annual rate of 4.750%. Its use of P-CBOs this time is seen as having diversified the company's bond-market funding methods.
A P-CBO is structured to issue securitized securities backed by corporate bonds and other assets issued by companies, with additional credit enhancement. Unlike raising funds directly in the general corporate bond market, it supports corporate financing through credit enhancement.
The private placement bonds related to this P-CBO carry an annual coupon rate of 5.448%, which is 69.8 basis points higher than the 4.750% rate on last year's private placement bonds (1 bp = 0.01 percentage point).
SK Nexilis has recently been pursuing funding through various methods. This month, it decided to issue privately placed bond-type hybrid securities totaling KRW 850 billion, consisting of KRW 530 billion and KRW 320 billion. The respective issuance rates are 6.860% and 7.325% per year, with maturities of 30 years.
Its parent company, SKC, has also stepped in to provide support. SKC provided a funding support commitment for securitized loans totaling KRW 850 billion taken out by six Special Purpose Companies (SPCs) that are acquiring the hybrid bonds. The structure involves the parent company providing credit enhancement during SK Nexilis's large-scale fundraising process.
The successive fundraising efforts are seen as being linked to weak market conditions for copper foil. SK Nexilis has posted operating losses for three consecutive years since 2023, affected by the electric-vehicle chasm, oversupply from China, and intensifying competition. On a consolidated basis in 2025, revenue stood at KRW 506 billion, while the operating loss was approximately KRW 191.7 billion.
[email protected] Kim Hyun-jung Reporter