Hanwha Solutions is accelerating measures to support itself following a reduction in the size of its rights issue. Hanwha Solutions said on Wednesday it sold a venture investment fund that has invested in U.S. innovative companies for $84.3 million (about 125.5 billion won).

It plans to use the proceeds to supplement funds for debt repayment created by the reduction in the rights issue and to bring forward efforts to improve its financial structure. Hanwha Solutions has invested in the fund through a subsidiary since 2022 to identify innovative U.S. companies in energy transition, circular economy and carbon utilisation and to secure business cooperation opportunities.

The company said it had not put the fund up for sale review because of its long-term investment nature. It said it decided to sell after reviewing additional self-help measures to ease the burden on shareholders, judging it to be an asset that can be monetised early with limited impact on mid- to long-term profitability. It plans to quickly push ahead with 300 billion won of investor asset monetisation presented during the rights issue revision process, following the raising of 300 billion won through the issuance of redeemable convertible preferred shares (RCPS).

Korea Investors Service and NICE Credit Rating maintained Hanwha Solutions' credit rating at AA- (negative) and AA- (Negative), respectively, in their regular credit evaluations in June this year. That differs from the downgrading of credit ratings and outlooks for some companies in the petrochemical sector amid a slowdown in the global solar and chemicals market. Korea Investors Service forecast a recovery in performance in the renewable energy segment, citing vertical integration synergies from the completion of the solar factory in Cartersville, its market position in residential energy business and an expansion of long-term engineering, procurement and construction contracts.

Jae-bin Lee (이재빈), chief financial officer of Hanwha Solutions, said, "Once the rights issue is completed, we plan to proceed without disruption with investment for future growth and plans to improve our financial structure." He said, "We have built the foundation for U.S. solar vertical integration with the completion of the Cartersville plant, and we expect stable performance momentum in the renewable energy segment to continue."