SK Nexilis, SKC's copper foil manufacturing subsidiary, is pursuing an 800 billion won ($594.4 million) private placement of hybrid bonds, its largest external capital raise, to fund the purchase of Redeemable Convertible Preferred Shares issued by its Malaysian subsidiary and strengthen its balance sheet. The board is expected to approve the issuance as early as the end of this month. The 30-year bonds would include call options at two-year and three-year intervals, with six securities firms forming a special purpose company to underwrite and resell them to South Korean institutional investors. The plan follows SK Nexilis's disclosure that it would acquire 10,352,990 Malaysian subsidiary RCPS shares from existing investors for 300 billion won ($222.9 million). SKC provided a conditional capital replenishment commitment after its 1.1671 trillion-won rights offering was directed to Absolics and debt repayment. SK Nexilis has recorded net losses for three consecutive years since 2023 amid a temporary EV demand slowdown and Chinese oversupply. Last year, revenue rose 59.3% to 506 billion won, while operating and net losses reached 191.8 billion won and 544.5 billion won, respectively. Debt was 2.3149 trillion won at year-end, and the debt-to-equity ratio reached 220% in the first half, according to the report. The ratio is expected to fall to 135% if the hybrid bonds are recognized as equity. Copper foil sales have recovered this year, with SKC's second-quarter copper foil revenue reaching a record 254 billion won and North American sales accounting for 67%.