Daishin Securities Decides to Issue 70 Billion KRW Hybrid Securities to Refinance Debt, Boosting Equity by 1.7%
Daishin Securities has decided to issue 70 billion KRW in unregistered, unsecured private hybrid perpetual securities. The bonds have a 30-year maturity with a call option exercisable after five years.
The coupon rate is 5.2% with a step-up of 2.0% every five years. Interest is payable quarterly in arrears, and payment can be deferred under optional or mandatory conditions, with deferred interest accumulating and compounding.
Proceeds will be used to fully repay 70 billion KRW of commercial paper maturing on July 10, 2026. This issuance will increase Daishin's consolidated equity by approximately 1.7% without diluting existing shareholders.
The private placement is allocated to a single institutional investor, DSK DB Second Limited Liability Company. The decision was approved by the board on June 8, 2026, with payment scheduled for July 3, 2026.
[AI Summary]Daishin Securities replaces short-term debt with permanent hybrid capital, improving balance sheet stability but increasing interest costs from 2.9% to 5.2%. No shareholder dilution occurs, supporting long-term capital adequacy.
KOSPI Filing Information
Report On Major Events (Decision On Issuance Of Debt Securities Recognized As Capital)