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Photo courtesy of Yonhap News |
[Alpha Biz= Kim Jisun] South Korea’s four largest commercial banks will purchase about KRW 600 billion worth of perpetual bonds to support the Daesan No.1 Project, which seeks to integrate petrochemical facilities in the Daesan complex in South Chungcheong Province, Seoul Economic Daily reported exclusively on March 2.
Under the plan, Hana Bank, Shinhan Bank, KB Kookmin Bank, and Woori Bank will jointly participate in the bond acquisition, alongside policy lenders including the Korea Development Bank and the Export-Import Bank of Korea.
According to the report, the creditor group plans to convert a total of KRW 1 trillion in existing loans into perpetual bonds to accelerate restructuring and ease the debt burden of the integrated entity. The move is intended to prevent a sharp rise in leverage during the shutdown and impairment of underutilized facilities.
The bonds are expected to carry interest rates in the mid-5% range—higher than existing loan rates but lower than market yields for comparable perpetual bonds—reflecting both risk considerations and prevailing bond market conditions, the report said.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
