SEOUL, Jan. 11 (Korea Bizwire) – SK hynix Inc., a major South Korean chipmaker, said Wednesday it has raised US$1 billion by selling a so-called sustainability-linked bond (SLB).
An SLB is a type of bond for which the interest rates can vary depending on whether the issuer achieves predefined environmental, social, and governance management objectives.
SK hynix said earlier it aims to reduce greenhouse gas emission intensity by 57 percent compared with its 2020 baseline by 2026.
Orders from more than 304 global institutions have surpassed its initial issuance target. Given robust demand, SK hynix has jacked up the amount of the SLB issuance to $1 billion from $500 million.
Along with SLB issuance, SK hynix also raised $750 million by floating a green bond, a type of bond with a special purpose, limited to be used only to fund environmentally friendly projects.