Stock-Related Bond Exercise Amount Increases by 37%

Last year, the exercise amount of convertible bonds (CB) and other stock-related bonds increased by about 37% compared to the previous year (2022).

Status of Stock-Related Bond Rights Exercise in the Past 5 Years. (Provided by Korea Securities Depository)

The Korea Securities Depository announced on the 18th that the number of exercises of stock-related bonds last year was 4,817, a 0.1% increase from the previous year. The exercise amount was 3.9664 trillion won, up 36.9% from the previous year. This is interpreted as investors realizing profits as the stock prices of the exercised items rose.

Stock-related bonds refer to bonds that can be converted or exchanged into the issuer's stocks if certain conditions (exercise price, exercise period) are met. If the stock value does not rise, the agreed interest can be received as a bond, and if the value rises, profits can be gained. This includes CB, exchangeable bonds (EB), and bonds with warrants (BW).

By type, CB increased by 14.6% to 3,011 cases compared to the previous year, EB increased by 120.2% to 273 cases, and BW decreased by 25.5% to 1,533 cases.

The exercise amount by type was 2.8433 trillion won for CB, up 33.8% from the previous year; 263.8 billion won for EB, up 75.6%; and 859.3 billion won for BW, up 38.3%.