Han Kook Capital Issues KRW 500 Billion in Unsecured Bonds (Series 565-1 and 565-2)
Han Kook Capital publicly offers a total of KRW 500 billion in unsecured bonds: Series 565-1 (KRW 300 billion, coupon 4.573%, maturity 2028-03-10) and Series 565-2 (KRW 200 billion, coupon 4.628%, maturity 2028-05-12). All three rating agencies assign A0 (stable). Proceeds will be used for operating funds (leases, loans, installment financing, etc.).
NPL ratio 4.5% (up from 3.26% previous year), non-performing loans KRW 199.1 billion. Loan loss provisions KRW 139.2 billion. Deteriorating asset quality requires monitoring.
Adjusted equity ratio 15.30% (above regulatory minimum of 7%), leverage 6.8x (below regulatory limit of 8x). Capital adequacy remains stable.
Of total borrowings of KRW 4.16 trillion, 54.6% mature within one year. Major shareholder (Korea Armed Forces Mutual Aid Association, 80.41% stake) provides credit facility of KRW 700 billion (KRW 290 billion used) and guarantees of KRW 335 billion, supporting liquidity.
Cash dividend of KRW 40 per share (previous year KRW 30), payout ratio 12.5%. 15 consecutive years of dividends.
Key risks: economic slowdown, real estate PF non-performing loans, intensifying competition, funding market volatility, information security risks, etc.
Provisions made for 25 pending lawsuits (total KRW 4.6 billion). Contingent liabilities related to ongoing bankruptcy proceedings of HK Asset Management Co., Ltd.
Issued KRW 150 billion in hybrid capital securities (Series 466: KRW 50 billion, Series 513: KRW 100 billion), classified as equity to strengthen financial structure.