Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

KT Sells Debt Backed by Phone Bills as Smartphone Sales Rise

Don't Miss Out —
Follow us on:

May 29 (Bloomberg) -- KT Corp., South Korea’s second-largest mobile phone operator, sold 443 billion won ($376 million) of bonds backed by phone bills this month as smartphone demand bolsters sales.

The sale follows the carrier’s first-ever offering of asset-backed securities, or ABS, worth 510 billion won in April, Chi Seung Hoon, a director for financing at KT, said in a phone interview on May 25. The Seongnam, South Korea-based company may sell more of the notes this year, he said.

The carrier joins South Korea’s two other mobile-phone carriers in selling ABS to capitalize on an increasing number of smartphone subscribers who pay the operators for their devices in monthly installments. SK Telecom Co. and LG Uplus Corp. along with KT sold a combined 4.8 trillion won of ABS this year, a fourfold jump from the same period a year ago, according to data compiled by Bloomberg.

KT had 8.54 million smartphone subscribers as of the end of the first quarter, compared with 3.84 million a year ago, according to the company. The influx raised its operating costs 14 percent in the period.

The company sold $350 million of U.S. dollar-denominated debt in January. It has no plan to sell more global bonds this year, Chi said.

To contact the reporters on this story: Jun Yang in Seoul at jyang180@bloomberg.net; Taejin Park in Seoul at tpark31@bloomberg.net

To contact the editors responsible for this story: Michael Tighe at mtighe4@bloomberg.net; Shelley Smith at ssmith118@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.