SK Innovation Raises $3.4 Billion in Major Financing With Meritz

South Korean oil refiner SK Innovation Co. has raised 5 trillion won ($3.4 billion) through local brokerage Meritz Securities Co., completing one of the country’s largest corporate financing deals.

Meritz directly provided 3 trillion won of the total in a securitized transaction by creating a special purpose company to acquire convertible preferred shares issued by SK Innovation’s LNG power subsidiaries, Meritz Chief Executive Officer Kim Jongmin told Bloomberg News last week. The other 2 trillion won was also provided by Meritz through a price return swap — backed by an electric vehicle battery unit, SK On Co. — that was later sold to downstream investors, Kim added.