By Kwanwoo Jun


SK Hynix Inc. said Wednesday it will issue $1 billion of sustainability-linked bonds, doubling the amount on stronger-than-expected investor demand.

The South Korean memory-chip maker raised its bond issuance from $500 million planned initially after taking orders from more than 300 global investors, which the company said exceeded its expectations.

"We see this as a result of global investors' trust in the company's commitment to climate action, along with the prospects of a turnaround in the semiconductor industry later this year," SK Hynix said.

SK Hynix described the sustainability bonds as being linked to its environmental, social and governance targets while noting its commitment to reducing carbon emissions in the coming years.

By 2026, the semiconductor manufacturer aims to cut its greenhouse-gas emissions by 57%, compared with its 2020 baseline, it said. Interest rates on the bonds will be finalized in the second half of 2027, depending on the company's achievements on the front.

"The company is highly encouraged by the large-scale investment even during the downturn in the semiconductor industry," SK Hynix said.


Write to Kwanwoo Jun at kwanwoo.jun@wsj.com


(END) Dow Jones Newswires

01-10-23 2206ET