iM Securities announced Tuesday it will issue 50 billion won ($35.3 million) in hybrid bonds to strengthen its capital base.
The latest issuance follows a 150 billion won hybrid bond offering in July, bringing the total capital raised through the two rounds to 200 billion won. The company said the combined fundraising is expected to help it reclaim its standing as a mid-tier brokerage.
The additional capital will lift iM Securities' equity to around 1.3 trillion won. Its net capital ratio is expected to rise to 531 percent, an improvement of 126 percentage points from the end of last year, marking a significant strengthening of its capital adequacy indicators.
The new hybrid bonds, set for issuance on Friday, will be fully subscribed by iM Financial Group. The securities carry a 30-year maturity and a coupon rate of 5.78 percent, with interest paid quarterly. iM Financial Group previously subscribed to 200 billion won in hybrid bonds issued by iM Securities in March 2022.
iM Securities said it plans to focus on securing future growth engines through the efficient deployment of the expanded capital. The company intends to expand its fixed-income and over-the-counter derivatives operations while sharpening its corporate finance and project financing businesses around large-scale, high-quality deals.
"Through the hybrid bond issuances that have proceeded since July, we have been able to restore our capital base and improve capital adequacy," an iM Securities official said. "We will build a foundation for sustainable growth by maximizing efficiency through proactive risk management of the secured capital."
jiyun@heraldcorp.com
