Korea Investment Securities (KIS) has become the first Korean securities company to surpass 10 trillion won in equity capital.
This is because its equity swelled thanks to the issuance of hybrid bonds to redeem issued notes.
According to an electronic disclosure by the Financial Supervisory Service (FSS) on March 13, KIS will issue 700 billion won in coco bonds to Korea Investment Holdings on March 28.
The hybrid bonds will be recognized as supplementary capital, increasing KIS’ total capital.
It accounts for 6.5 percent of the company’s equity capital of 9.3 trillion won as of the end of 2024.
The figure is expected to surpass the 9.8901 trillion won of Mirae Asset Securities as of the end of 2024.
The coco bonds will be fully underwritten by Korea Investment Holdings.
Payment is scheduled for March 28. The hybrid bonds will mature on March 28, 2055.
After the issuance of the coco bonds, KIS’ equity capital is expected to climb and the limit of issued commercial papers is expected to expand to about 20 trillion won.
As of the end of last year, the issuance limit was 18.6 trillion won.
They can be issued within twice the amount of equity capital.
KIS’ issued commercial paper balance stood at 17.3 trillion won at the end of last year.
The amount has 1.3 trillion won left to reach the limit.
“The issuance of the coco bonds will have a positive impact on capital adequacy and improve market position,” said NICE Investors Service. “It will have a limited impact on KIS’ credit ratings.”
Korea Investment & Securities holds an online seminar by analysts from U.S. financial firm Stifel for its private bankers (PBs) nationwide to increase their global investment capabilities on April 2.
Special RPs Exclusively for BanKIS Brokerage ISAs
KIS announced on March 24 that it will sell special repurchase papers (RPs) exclusively for BanKIS brokerage ISA accounts on a first-come, first-served basis.
BanKIS is a non-face-to-face and commercial bank-linked online account service of KIS.
The special edition of the repurchase agreements has a six-month maturity and offers a pre-tax return of 4 percent per annum. Eligible customers are those who opened a new Bankis brokerage ISA account and those with an existing account balance of less than 1 million won.
Investments can be made in increments of 1 million won from a minimum of 5 million won to a maximum of 20 million won.
The window of investment will be closed early if the limit is exhausted.
There are also various promotions for BanKIS’s brokerage ISA customers. New customers who opened an account and deposit 1 million won or more by March 31 will receive one share of a U.S. monthly dividend ETF.
KIS Named Syndicate House of the Year’ by APLMA
KIS announced on Feb. 27 that it has been named the Syndicate House of the Year in Korea at the APLMA Syndicate Market Awards in Hong Kong.
Organized to promote the syndicated loan market in the Asia-Pacific region, the APLMA annually recognizes syndicators that have demonstrated outstanding performances over the past year through its awards ceremony.
A syndicated loan is a type of collective lending in which multiple financial companies form a borrowing group to raise a large amount of funds under the same terms and conditions, usually under the leadership of a foreign bank in the international financial market.
KIS was the first Korean securities firm to be recognized at the awards, demonstrating its capabilities in procuring foreign currency syndicated loans.
In 2024, KIS led a foreign currency syndication totaling $805 million with Hyundai Capital, KB Kookmin Card, and Hyundai Commercial, topping the league table, beating out other financial players.
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