Gyeongnam Bank Finalizes 100 Billion Won Hybrid Capital Issuance to Boost BIS Ratio, No Equity Dilution
Subsidiary Gyeongnam Bank finalized the issuance of 100 billion KRW in write-down contingent capital securities (hybrid capital) to enhance its BIS ratio through additional Tier 1 capital expansion.
The coupon and yield to maturity were set at 5.20%, with a perpetual maturity but a call option exercisable by the issuer after 5 years, subject to regulatory approval.
These securities are write-down contingent capital; if the issuer is designated as a troubled financial institution, principal and interest may be permanently written off, not constituting a default event.
The issuance will be public, with payment date on June 5, 2026, and Hanyang Securities as lead manager.
This capital raise does not involve common equity dilution, thus having no direct impact on existing shareholders' value.
[AI Comprehensive Analysis]This disclosure represents a neutral event aimed at strengthening the financial soundness of the banking subsidiary without diluting shareholders. The 5.20% coupon rate is considered appropriate given market conditions, though the perpetual nature adds ongoing interest costs.
KOSPI Filing Information
Filing: [Correction of Description] Decision On Issuance Of Amortizing Conditional Capital Securities (Major Management Matters Of Subsidiary)