This article was published on Aug. 14, 2025, at 2:52 p.m. on the ChosunBiz MoneyMove site.
Mirae Asset Securities and Samsung Securities have begun selling down 300 billion won worth of SK IE Technology (SKIET) stock return swaps (PRS). The volume that could not be sold to institutional investors will be borne by the two securities firms.
According to the investment banking (IB) industry on the 14th, Mirae Asset Securities and Samsung Securities are persuading institutional investors with a fixed interest rate of 4.35% to sell 300 billion won worth of SKIET PRS. The two securities firms will take on 200 billion won and 100 billion won, respectively.
The two securities firms established a special purpose company (SPC) to participate in a capital increase of 300 billion won conducted by SKIET on the 30th of last month. The SPC purchased SKIET shares worth 300 billion won at 28,600 won per share. During the contract period, the parent company, SK Innovation, will pay a certain fee to the securities firms, and SK Innovation will also bear the profits and losses resulting from stock price fluctuations at maturity in this PRS structure.
The sell-down itself is likely to be completed smoothly. This is because the SK On PRS sell-down volume, which has a lower interest rate, has already sold out. Battery manufacturer SK On raised 2 trillion won in the same structure as SKIET. Of the 2 trillion won, 1.4 trillion won was raised at a 4.3% interest rate as senior debt, while the remaining 600 billion won was raised at a 7.8% interest rate as subordinated debt. The senior debt has completed its institutional investor sell-down, while the subordinated debt has been acquired by the lead manager, MERITZ Securities.
SKIET urgently needed to improve its financial structure, as its poor performance had already led to changes in its credit rating outlook at the end of last year. Korea Ratings changed SKIET's credit rating and outlook from 'A0, stable' to 'A0, negative' at the end of last year, and this year, NICE Investors Service also adjusted the rating outlook to 'negative.' SKIET, which recorded a loss of 291 billion won last year, continued to record a loss of about 100 billion won until the first half of this year.
However, there are assessments that it will be difficult to expect a change in the rating outlook even with this capital increase. Korea Ratings noted, "Considering the remaining investment plan of 100 billion won and the poor performance trend in the SK On battery institutional sector, the pressure for credit rating downgrade will be alleviated only if financial improvements through self-rescue measures such as the sale of non-core assets and recovery of operational performance are carried out in parallel."
SKIET plans to use the funds raised this time for operating capital and strengthening research and development (R&D) capabilities. SKIET, established as a spin-off from SK Innovation's materials business division in 2019, is responsible for the manufacture of separators, a key material for secondary batteries.