SK On has decided to assume principal and interest obligations on $1.5 billion of overseas bonds issued by its U.S. battery subsidiary, SK Battery America, or SKBA. The debt is worth about 2.03 trillion Korean won and equals 14.05% of SK On’s consolidated equity as of the end of last year. The bonds comprise a $500 million issue maturing in January 2027 with a 4.875% coupon and a $1 billion issue maturing in January 2029 with a 4.25% coupon. The transfer will take effect only if bondholders approve a change of issuer at meetings for each bond series scheduled for the end of next month. SK On will account for the arrangement as a loan to SKBA equal to the bonds’ principal, shifting the subsidiary’s external capital-market debt into borrowing from its parent. SKBA operates SK On’s battery plant in Georgia, and the company said the move is intended to ease the subsidiary’s external financing burden.