SK Enmove, the lubricants subsidiary of SK Innovation, raised 300 billion won ($223 million) from a corporate bond sale on March 4, twice its initial target of 150 billion won, as investors showed strong appetite for the debt.
The company’s bond offering attracted 1.99 trillion won ($1.5 billion) in subscriptions during its February 21 forecast – more than 15 times the initial target. Demand was spread across three-year bonds (850 billion won), five-year bonds (780 billion won), and ten-year bonds (360 billion won).
SK Enmove secured favorable pricing on the issuance, with rates set below market averages: 20 basis points lower for three-year bonds, 10 basis points lower for five-year bonds, and 40 basis points lower for ten-year bonds. This advantageous pricing reduces the company’s interest payment burden.
The robust demand reflects investor confidence in SK Enmove’s financial performance, which has generated EBITDA exceeding 1 trillion won for three consecutive years from 2021 to 2023.
Beyond financial strength, the company has been advancing its technological portfolio. In partnership with SK On, SK Enmove recently developed immersion cooling technology for electric vehicle batteries, which circulates insulating fluid inside battery packs to maintain safe operating temperatures and reduce thermal runaway risks.
The company has expanded this cooling technology to data centers and energy storage systems, leading to collaborations with SK Telecom in 2023 and Hanwha Aerospace last year.
SK Enmove plans to use the bond proceeds for debt repayment and other strategic initiatives.
