HUG Issues New Capital Securities Worth 700 Billion KRW... "Stable Guarantee Supply"

The Housing and Urban Guarantee Corporation (HUG) announced on the 21st that it will issue new hybrid capital securities worth 700 billion KRW.

Photo by Housing and Urban Guarantee Corporation (HUG)

HUG secured investment demand exceeding the offering amount in the demand forecast conducted on the 19th and decided to issue the maximum increased amount of 700 billion KRW as stated in the securities registration statement. The issuance terms are a 30-year maturity with a 5-year call option (early redemption right) at an interest rate of 4.1%, and the issuance date is set for the 26th. As the new hybrid capital securities are special bonds, they are recognized as equity capital. This is the first time HUG is raising funds independently without government fund contributions.

HUG can provide guarantees up to 90 times its capital, so the capital increase from this new hybrid capital securities issuance will additionally secure the capacity to supply guarantees. A HUG official stated, "We will establish a stable guarantee supply foundation and faithfully carry out our role in supporting the housing stability of the public."