Industrial Bank of Korea Decides to Issue 300 Billion KRW Write-Down Conditional Capital Securities to Enhance BIS Ratio via Additional Tier 1 Capital
Industrial Bank of Korea resolved on June 25, 2026 to issue 300 billion KRW of unregistered unsecured unguaranteed write-down conditional capital securities also known as new type capital securities.
The purpose is to improve the BIS capital adequacy ratio by expanding additional Tier 1 capital and the proceeds will be used for loans and securities investment.
These perpetual securities include a issuer call option after five years with no step-up coupon clause.
In the event the bank is designated an insolvent financial institution the principal and accrued interest will be permanently written down without constituting a default.
Interest payments may be mandatorily or optionally suspended under conditions such as insufficient distributable profits or capital ratio breaches.
The securities carry subordination clauses ranking behind senior creditors and all supplementary capital in liquidation or bankruptcy.
No shareholder return measures are included and there is no dilution of existing shares.
[AI Summary]Industrial Bank of Korea's 300 billion KRW new type capital securities issuance preemptively strengthens its BIS ratio without diluting shareholders. The defensive capital raising coupled with the bank's state-backed creditworthiness presents low credit risk, though the write-down and interest suspension features are key risk factors for investors.
KOSPI Filing Information
Report on Major Matters (Decision on Issuance of Write-Down Contingent Capital Securities)