SK Hynix is looking to raise around $1 billion through a bond deal after suffering operating losses of around $6.2bn during the first three quarters of 2023.
According to a report by Reuters, the South Korean memory chipmaker has appointed eight investment banks to work on the deal which is expected to have a tenure of between three and five years.
This is the second time SK Hynix has undertaken such a fundraising exercise, having raised $1.7bn in a convertible bond back in April 2023. At the time of the sale, the company said it would use the proceeds to finance the purchase of chip manufacturing supplies.
The company’s losses were attributed to the slowdown in PC and smartphone sales, which resulted in a declining demand for chips. Consequently, SK Hynix has pivoted its focus to high bandwidth memory (HBM) chips used in generative AI.
In September, SK Group, the parent company of SK Hynix, announced its construction subsidiary SK Ecoplant had signed a memorandum of understanding (MoU) with DCT Telecom and KB Asset Management for the creation of a new 120MW data center campus and landing station in Pohang, South Korea.
That same month, SK Ecoplant signed an agreement with Lumcloon Energy to build a new data center in Ireland that will rely on gas-powered fuel cells rather than a grid connection.
