The domestic private equity fund (PEF) management firm IMM Credit Solutions (ICS) sold all of its shares in HD Hyundai Heavy Industries, amounting to 300 billion won. The return on investment reached 25.7%.
On the 4th, according to the investment banking (IB) industry, ICS sold all 1,730,576 shares of HD Hyundai Heavy Industries as of July 31, recovering its investment. This was based on the equity bond (EB) issued by HD Korea Shipbuilding & Offshore Engineering in March for financing the acquisition of an overseas shipyard, using HD Hyundai Heavy Industries shares as underlying assets.
Through this EB investment, ICS earned about 77 billion won in five months. An EB refers to a bond that grants the right to exchange it for shares of another corporation (HD Hyundai Heavy Industries) held by the issuing company (HD Korea Shipbuilding & Offshore Engineering). The investment was made through ICS's first blind fund, which recorded an annualized return of 162%.
The maturity date of the EB is March 28, 2030, with both the maturity interest rate and the nominal interest rate set at 0%. This means that investors can only expect capital gains through the stock exchange. The exchange price for the EB is 346,705 won, while the closing price of HD Hyundai Heavy Industries was 490,500 won as of July 31.