Ssangyong Motor is seeking to secure funds to raise operating capital.
On the 10th, Ssangyong Motor announced that it will issue 108.5 billion KRW worth of unsecured private perpetual convertible bonds.
Ssangyong Motor will issue convertible bonds divided into 73.5 billion KRW, 30 billion KRW, and 5 billion KRW. The bond maturity date is March 2028. From March next year, the CB can be converted into Ssangyong Motor shares.
78.5 billion KRW will be issued to Eugene Investment & Securities, and 30 billion KRW to the venture capital firm Q Capital Partners' '2018 QCP 13 Private Investment Partnership.'
Ssangyong Motor explained that the procured funds will be used as operating capital for product development costs, material costs, labor costs, and so on. Ssangyong Motor was acquired by KG Group in August last year. KG Group invested 365.5 billion KRW to repay rehabilitation bonds and secured about 210 billion KRW of Ssangyong Motor operating funds through a paid-in capital increase.
Ssangyong Motor expects that by additionally securing operating funds through this convertible bond issuance, it will be able to improve its financial structure.
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