Crawley Mela

Main Menu

  • Home
  • Export-Import Bank
  • S&P 500 Index
  • External market
  • Pooling of interests
  • Financial Affairs

Crawley Mela

Header Banner

Crawley Mela

  • Home
  • Export-Import Bank
  • S&P 500 Index
  • External market
  • Pooling of interests
  • Financial Affairs
Export-Import Bank
Home›Export-Import Bank›Eximbank does not yet consider converting Korean Air permanent convertible bonds into shares

Eximbank does not yet consider converting Korean Air permanent convertible bonds into shares

By Pia
October 15, 2021
0
0


The Export-Import Bank of Korea still has no plans to convert Korean Air permanent convertible bonds acquired in June of last year into common stock.


The Export-Import Bank of Korea (Eximbank) has no plans to convert Korean Air permanent convertible bonds it acquired in June last year into common stock, according to media reports.

The state bank’s position is quite different from that of the Korea Development Bank (KDB) regarding its holdings of HMM convertible bonds. In June of last year, the KDB suggested it could convert bonds into stocks because otherwise it could be accused of breach of trust.

Eximbank and KDB bought 300 billion won of Korean Air’s permanent bonds in June 2020, with Eximbank providing 120 billion won. The bonds can be converted into ordinary shares one year after their issuance.

The two banks convert their permanent bonds into 20,399,836 ordinary shares as of June 22. The conversion price is 14,706 won per share. Since Korean Air’s share price is 30,800 won based on the October 14 closing price, the two banks can achieve more than 100% ROI when converting their bonds.

On the other hand, if the two banks do not exercise their prepayment rights by June 22, 2022, Korean Air will buy back the permanent bonds. In this case, it is difficult for the two banks to avoid being accused of breach of trust.

However, Eximbank has yet to come up with a plan to convert the permanent bonds into common stock. “The permanent bonds were issued to help standardize the management of Korean Air,” the bank said. “Now is not the right time to exercise the right of conversion as the management of Korean Air has not been fully standardized. We will continue to monitor the management of the airline.”


Related posts:

  1. The development of the longest bridge in PH to blow up – Manila bulletin
  2. FG, the state debt profile stands at 32.9 billion naira
  3. The commerce finance market is predicted to prosper by 2028
  4. At 5.6% CAGR, Commerce Finance Market Measurement To Exceed USD 11,140,320 Million By 2025
Tagsexport import

Categories

  • Export-Import Bank
  • External market
  • Financial Affairs
  • Pooling of interests
  • S&P 500 Index
  • Privacy Policy
  • Terms and Conditions