In the latest demand forecast, KB Finance has received the attention of various investors, including securities companies, insurance companies, and mutual aid associations, based on the highest level of profits and creditworthiness in the domestic financial sector. Through this, it secured a demand of 1,104 billion won, which is about 3.2 times the planned amount of 35 billion won. In this atmosphere, it issued an increase in new capital securities worth 600 billion won.
New capital securities are recognized as equity capital as permanent bonds, and in general, the issuer provides a call option (right to recover) after a certain period (5 years, 10 years, etc.) to repay the new capital securities to investors. It’s a form.
Securing the demand of 1,104 billion won is the largest ever. It is the first in Korea to issue new capital securities worth 600 billion won. This issuance was carried out in three types of call options for 5, 7 and 10 years.The 5-year call option 420 billion won is 2.67%, the 7 year call option 60 billion won 2.87%, and the 10-year call option 120 billion won It was issued at an interest rate of 3.28%.
The success of the 7-year call option issuance of new capital securities is the first case in Korea, and it is meaningful that KB Financial has diversified its maturity portfolio through active IR and investor discovery and contributed to the expansion of demand in the new capital securities market.
An official of KB Financial Group said, “The issuance of new capital securities has a variety of significance, such as issuance at the highest level of the lowest interest rate ever and the development of a new 7-year call option market. I will do my best to increase the value.”