S KOREA'S HANARO TELECOM TO ISSUE US$600 MLN OF YANKEE BONDS.

SEOUL, March 1 Asia Pulse - Instead of arranging a five-year syndicated loan, Hanaro Telecom Inc. (KOSDAQ:033630) plans to issue US$600 million of bonds in the United States to refinance debt, company chief executive officer Yoon Chang-bun said Monday.

"In order to overcome Hanaro's shaky financial condition, it is necessary to replace short-term liabilities with mid- and long-term debts," Yoon told Yonhap News Agency in an interview.

Hanaro, acquired by American International Group Inc. and Newbridge Capital Ltd. for $500 million last November, had originally planned to raise another $600 million in syndicated loans from domestic and foreign banks, helped by the U.S. investors.

"An agreement on the bond issue was made with the U.S. investors," the executive said.

The country's second-largest broadband Internet operator was rescued by the $500 million deal, but Hanaro still has some 1.9 trillion won ($1.6 billion) of short-term debt.

Although the settlement date for the planned bonds has yet to be decided, Yoon said the bond issue will be completed by the end of this year.

The money from the Yankee bonds, or dollar-dominated bonds issued in the U.S. by foreign corporations and banks, is considered vital for the cash-strapped Hanaro to repay debt accumulated from building its broadband Internet network and to fund its operations.