SNT Holdings will raise 150 billion won by issuing exchangeable bonds and convertible bonds. The company said it will use this financing to improve its financial structure to strengthen its holding company system while also securing funds for investment in new technologies.
SNT Holdings held a board meeting on the 11th and decided to issue 30 billion won in convertible bonds and exchangeable bonds using its equity stakes in SNT Dynamics and SNT Energy as the exchange underlying, totaling 77.1 billion won and 41.3 billion won, respectively. Both the convertible bonds and exchangeable bonds to be issued will be underwritten by IMM Credit & Solution.
The conversion price of the convertible bonds to be issued on Jan. 9, 2026, is 63,086 won. These convertible bonds do not include a refixing clause that adjusts the conversion price if the share price falls. If the entire amount is converted, 475,541 new shares (3.11%) will be issued. The conversion request period is from Jan. 11, 2027, to March 9, 2028.
The company noted that although interest rates remain high due to the recent tightening in the bond market, these bonds were issued on an ultra-low interest basis with a 0% coupon (1% yield to maturity), allowing it to secure necessary funds while maintaining financial soundness.
The exchangeable bonds will be exchangeable for equity in subsidiaries held by SNT Holdings. For the bonds exchangeable into 4.7% (1,546,994 shares) of SNT Dynamics stock, the exchange price is 49,871 won, and for the bonds exchangeable into 4.7% (968,293 shares) of SNT Energy stock, the exchange price is 42,605 won. Both exchange prices are above the share prices on the 11th.
The exchangeable bonds also do not include a refixing clause that adjusts the exchange price if the share price falls. The exchangeable bonds are scheduled to be issued on Jan. 16, 2026, and will mature 2 years and 3 months after issuance.
The company also expects the number of shares outstanding to increase through this bond issuance. The company said, "In particular, this bond issuance will raise SNT Holdings' separate-basis book value per share (BPS) by about 5,300 won," adding, "It can also enhance shareholder value."
SNT Holdings also issued 90 billion won in exchangeable bonds in July, and IMM Credit & Solution fully underwrote the bonds at the time as well. A company official said, "With the balance remaining from its previous investment in exchangeable bonds, IMM Credit & Solution made an additional investment after seeing the growth potential of SNT Group, which focuses on defense and energy as its main business areas."