Hanwha Investment and Securities to issue 400 billion won hybrid bonds

Hanwha Investment and Securities will issue 400 billion won in contingent convertible bonds, also known as hybrid capital securities, later this month, Chosunbiz reported. Institutional investors including Korea Development Bank and DB Insurance are participating in the issue. The transaction follows a 500 billion won rights offering completed by the financial firm last month. [1]

The upcoming hybrid bonds carry an annual interest rate exceeding 6 percent, according to Chosunbiz. Major institutional investors are placing bids worth hundreds of billions of won each in single transactions. Within the issuance, Korea Development Bank intends to purchase 70 billion won of the securities. [1]

Hanwha Group was established in 1952 under the name Korea Explosives Co. before changing its name to Hanwha in 1992. The South Korean conglomerate operates across multiple sectors including energy, materials, aerospace, mechatronics, retail, lifestyle services, and finance. [6]

The capital raise occurs amid broader debt market activity in South Korea. BigGo Finance reported that corporate bond bookbuilding for Korea Investment and Securities attracted approximately 1.3 billion dollars in orders, which exceeded its original target by more than six times. [5]