South Korean energy company SK E&S secures $2bn investment from KKR

KKR said that it has acquired KRW 2.4 trillion ($2 billion) worth of the newly issued redeemable convertible preferred shares of South Korean energy company SK E&S.

According to KKR, the investment will give it an opportunity to get cash or in-kind redemption as an option for repayment in the future along with the potential of converting into SK E&S’ common shares.

The global investment firm made its investment in the South Korean energy company from its Asia Pacific Infrastructure Fund.

SK E&S is expected to utilize the funding to fast track its growth and transformation into a global provider of clean energy solutions.

Founded in 1999, SK E&S is a part of South Korean conglomerate SK Group. It is engaged in a variety of businesses, including upstream such as overseas development of gas fields and downstream such as generation of power, district energy, and city gas distribution.

The company is developing 2.5GW of renewable energy facilities apart from growing its portfolio through large-scale investments in Plug Power, Rev Renewables, and other companies.

Keith Kim from KKR’s infrastructure team said: “KKR is excited by this unique opportunity to join SK E&S in its journey to accelerate its growth and transformation into a global clean energy solution provider. KKR is additionally pleased to further expand its valued relationship with the SK Group.

“Sustainability continues to be at the top of its minds at KKR when reviewing and executing investments, which is why KKR is excited to invest together with leading businesses such as SK E&S that seek to provide sustainable energy solutions.”