IBK Securities said on the 30th that it issued the "IBK Securities 2nd private bond-type contingent convertible bond" worth 120 billion won. Contingent convertible bonds are marketable securities that have the characteristics of both stocks and bonds and are recognized as capital in accounting.
Eight institutions, including insurers and mutual aid associations, participated in the underwriting, setting the coupon rate at 4.8%. The maturity is Oct. 29, 2055 (30 years), and a call option is granted after five years.
IBK Securities followed last year's 100 billion won issuance of contingent convertible bonds by further strengthening capital this year. With this issuance, the net capital ratio (NCR) rose to 553% from 482% at the end of June this year.
IBK Securities plans to supply venture capital needed for the growth of small and midsize enterprises, including acquisition financing and initial public offerings (IPO), based on the increased NCR.
Seo Jeong-hak, CEO of IBK Securities, said, "The successful issuance of contingent convertible bonds was possible because IBK Securities' strengths as a midterm-specialized securities firm were recognized in a market environment centered on comprehensive investment banks," adding, "We will do our best to supply venture capital that supports the leap of small and venture companies in line with the government's productive finance stance."