[Edaily Marketin Reporter LEE GEON-EOM ] NH INVESTMENT & SECURITIES(005940)is issuing 500 billion won worth of unsecured corporate bonds via a direct public offering for the first time in its history, and attention is focused on SK hynix(000660)’s participation as a major investor.

According to the financial investment industry on the 22nd, NH INVESTMENT & SECURITIES submitted a securities registration statement to issue up to 500 billion won in corporate bonds as a single 3-year maturity issue. This issuance is structured such that the issuer accepts subscriptions directly from investors without appointing a lead underwriter or underwriting syndicate.

SK hynix has been identified as a key investor in this funding round. Recently, a fierce behind-the-scenes competition has been unfolding in the securities industry to attract what is known as SK hynix’s “semiconductor money.” From the perspective of securities firms—which need to proactively secure long-term funds in preparation for stricter liquidity management regulations taking effect next year—SK hynix, with its abundant cash reserves, is considered an attractive partner.

In fact, efforts to secure “semiconductor money” are gaining momentum, particularly among major securities firms. MIRAE ASSET SECURITIES recently raised 1.26 trillion won through long-term commercial paper (CP) with maturities of one year or more. It is also reported to be preparing an additional issuance of 1.3 trillion won targeting SK hynix by the end of this month. Previously, KB Securities also secured funding from SK hynix during the bookbuilding process for a public bond offering last month.

Meanwhile, according to a filing submitted by NH INVESTMENT & SECURITIES, the average yield on 3-year individual corporate bonds remained below 4% through April 14 but reached the 4.5% range as of the 13th of this month.