[Asia Economy Reporter Jang Hyowon] Seowon, a specialized automotive air conditioning parts company, announced on the 12th that it has decided to issue 20 billion KRW worth of anonymous, interest-bearing, unsecured private convertible bonds (CB).
The nominal interest rate and maturity interest rate are both 0%, and the maturity date is May 14, 2026.
The raised funds will be used as facility funds for acquiring land and buildings to expand production facilities and for domestic and overseas equipment expansion, amounting to 15 billion KRW, and 5 billion KRW will be used for raw material purchases and operating funds for overseas subsidiaries.
The convertible bond issuance targets are ▲ IBK Capital 3 billion KRW ▲ Mirae Asset Securities 2 billion KRW ▲ NH Investment & Securities (including trustee status for Queens Fund 1 and Rico Fund 2) 2 billion KRW ▲ Nongshim Capital 2 billion KRW ▲ Synergy-Shinhan Mezzanine New Technology Investment Association No. 2 2 billion KRW, among others.
A Seowon representative said, “As orders for electric vehicle air conditioning parts from global automakers increase, we have decided to expand domestic and overseas production facilities to actively respond to the increased supply volume from our customers. With a fully automated production line throughout the entire process, we have excellent productivity and cost competitiveness, and through this production line expansion, we will further strengthen our competitiveness in the global electric vehicle market.”
In April, Seowon secured 24 billion KRW in cash liquidity through the sale of affiliate shares. Along with the existing high-growth electric vehicle air conditioning parts business, the company aims for significant external growth and profitability improvement through the acquisition of Uno & Company. The group’s affiliates, Polaris Office and Polaris Works, are actively pursuing business diversification and securing new growth engines within the group.
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