[Edaily Reporter Shin Ha-yeon ] Asia Pacific Satellite Inc.(211270)announced on the 29th that it will issue 40 billion won worth of convertible bonds (CBs) to fund its SAR (Synthetic Aperture Radar) satellite project, which it is promoting as a next-generation growth engine.

These CBs have a nominal interest rate and a maturity interest rate of 0%, and neither call options nor refixing (conversion price adjustment) conditions apply. The conversion price was set at 13,262 won, approximately 61% higher than the previous trading day’s closing price (8,210 won).

The company explained that this fundraising is a strategic investment for its SAR satellite business, rather than an effort to secure working capital.

The funds raised will be used for securing the SAR payload, as well as satellite manufacturing, domestic assembly and testing (AIT), launch and insurance, and preparations for satellite operations. The company plans to complete the development of its first SAR satellite between 2026 and 2028, and then gradually expand its business to include the development of its own SAR payload and the launch of the second satellite.

SAR satellites use radar to observe the Earth’s surface and can acquire imagery even at night or in adverse weather conditions, making them useful in various fields such as national defense, disaster response, and maritime surveillance.

Asia Pacific Satellite Inc. intends to expand its SAR business by leveraging its satellite manufacturing, assembly, and testing capabilities, built on the technological expertise accumulated through its existing satellite communication terminals and satellite payload businesses.

The company’s strategy is to expand its business scope beyond satellite manufacturing to include satellite operations and imagery services, thereby establishing a new revenue base.

A company official stated, “This convertible bond (CB) issuance is not for raising operating funds but rather an investment in a specific growth project—the SAR satellite business,” adding, “We will build a new business model that integrates everything from satellite manufacturing to operations and imagery services.”