SK Chemicals studying various options to raise funds

SK Chemicals studying various options to raise funds

Title: SK Chemicals Exploring Multiple Funding Options

SK Chemicals, a prominent chemical company, is actively exploring various funding options to bolster its financial position. The company has been studying potential avenues to secure additional capital, as reported by industry insiders. This move comes amid a growing trend in the global chemical sector where companies are increasingly turning to innovative financing methods to support their growth and expansion plans.

One of the key strategies being considered by SK Chemicals is the issuance of asset-backed securities (ABS). The company is looking to raise funds through ABS, which are backed by a pool of loans tied to its infrastructure and telecom divisions. This approach is gaining traction in the Indian market, where securitization deals are expected to reach a record high of over 2.5 trillion rupees by the end of March 2026 [1]. The ABS deal could be one of the largest such transactions in India this year, indicating the significant interest in this funding method.

In addition to ABS, SK Chemicals is also considering other financing options. The company has been in discussions with various Japanese banks, including Mizuho Financial Group Inc., Mitsubishi UFJ Financial Group Inc., and Sumitomo Mitsui Banking Corporation, to secure a yen loan. This loan is being syndicated to a wider market, suggesting that SK Chemicals is looking to diversify its funding sources [1].

The company's strategic move to explore multiple funding options reflects its commitment to financial stability and growth. By leveraging diverse funding sources, SK Chemicals aims to strengthen its financial position and support its ongoing operations and expansion plans.

References
[1] https://www.business-standard.com/companies/news/reliance-plans-to-raise-2-billion-through-asset-backed-securities-125090301699_1.html