Gridwiz Raises 25 Billion Won via CBs to Expand BESS and AI Businesses

Gridwiz plans to issue 25 billion won in convertible bonds (CB). These funds will be used to expand its Battery Energy Storage System (BESS) business and launch new Artificial Intelligence (AI) data center projects. On the 24th, Gridwiz’s board of directors decided to issue a total of 25 billion won in unregistered, non-interest, unguaranteed private CBs. A CB is a security where an investor lends money to a company which can later be converted into stock.

The company plans to use 18 billion won of the capital for facilities and 7 billion won for operating expenses. Of the facility funds, 9 billion won will be invested in domestic distribution network ESS construction projects, and the remaining 9 billion won will go toward Australian BESS projects. The 7 billion won in operating funds will be utilized to promote domestic and global AI data center-related businesses and overseas BESS projects. This expansion follows the selection for the distribution network ESS project.

The maturity for both tranches of the convertible bonds is five years, with both the coupon rate and yield to maturity (YTM) set at 0% per annum. The first tranche of CBs will be placed through multiple investment trusts, while the second tranche will be acquired by KBS ViGlobal Advanced Strategy Private Investment Limited Partnership.