South Korea's Woori Technology Completes KRW 40 Billion Convertible Bond Financing to Bolster Nuclear Power and SMR Businesses

Woori Technology, a South Korean company specializing in nuclear power plant Man-Machine Interface Systems (MMIS) and related instrumentation and control equipment, announced on August 6 that it has decided to issue the 20th series of unregistered, unsecured private convertible bonds (CBs) totaling KRW 40 billion. The raised funds will be primarily used for nuclear power, small modular reactor (SMR), offshore wind power, and resource recycling businesses.

The maturity date of these convertible bonds is August 13, 2031, with a conversion price of KRW 10,717 per share. Both the coupon rate and yield to maturity are 0%, which helps the company secure long-term funding for core business investments while controlling financial costs.

Woori Technology stated that the majority of the raised funds will be invested in its nuclear power business. The company plans to supply key components for the Distributed Control Systems (DCS) of Units 3 and 4 at the Shin-Hanul Nuclear Power Plant, and will continue to invest in research and development related to the innovative small modular reactor (i-SMR).

In 2023, Woori Technology signed a single supply contract worth approximately KRW 54 billion to supply DCS controllers for Units 3 and 4 of the Shin-Hanul Nuclear Power Plant. As of the first half of this year, the company's order backlog has exceeded KRW 100 billion.

In addition to its nuclear power business, Woori Technology also plans to allocate part of the funds to offshore wind power and resource recycling businesses. Specifically, the funds will be used to cover costs related to the offshore wind power foundation installation vessel "Nuribaram 1," which the company purchased earlier this year, and to invest in resource recycling business facilities. Its subsidiary Wave Jeongeup has signed a refined oil product supply contract with global raw materials trading company Trafigura, and has recently completed the export of its first batch of cargo.

A Woori Technology official stated that the company received investment based on its market position in South Korea's nuclear power plant control system sector, its capability to undertake large-scale projects, and its experience in participating in national next-generation nuclear power projects such as small modular reactors. The company plans to use the raised funds to fulfill nuclear power plant supply contracts, advance i-SMR technology development, and expand its offshore wind power and resource recycling businesses.

Woori Technology stated that it will continue to drive profit growth through orders in existing sectors such as nuclear power, social infrastructure, and defense, while cultivating new businesses including offshore wind power and resource recycling. As the delivery of core MMIS and DCS components for nuclear power plants gradually progresses, the company expects the improvement in business performance from these operations to begin manifesting from this year.