DB Insurance Issues 410 Billion KRW New Hybrid Capital Securities, Boosting K-ICS Ratio by 4.2 Percentage Points
DB Insurance is publicly issuing 410 billion KRW of new hybrid capital securities (Series 4), increasing the initial amount by 110 billion KRW due to strong demand.
The coupon rate is fixed at 5.30%, with a 30-year maturity (2056) and a company call option after 5 years.
All proceeds (410 billion KRW) will be used to repay the existing 2nd unsecured subordinated bonds (3.80% coupon, issued 2021, maturing 2031).
Post-issuance, the consolidated K-ICS ratio is expected to rise from 232.1% (Q1 2026) to 236.3%, a 4.2 percentage point increase; the basic capital ratio also improves from 92.1% to 93.3%.
Rated AA0 (stable) by Korea Ratings and NICE, the issue saw strong demand with 255 billion KRW in bids, indicating investor confidence.
As a pure debt instrument with no conversion rights, there is no shareholder dilution, and the issuance enhances financial soundness by strengthening supplementary capital.
[AI Summary]DB Insurance's issuance of new hybrid capital securities replaces existing subordinated debt with more equity-like instruments, boosting the K-ICS ratio by 4.2 percentage points. Without diluting shareholders, this move strengthens the financial safety net, positively impacting long-term shareholder value.
KOSPI Filing Information
Filing: [Confirmation of Issuance Terms] Securities Registration Statement (Debt Securities)