Korea Ratings Corporation analyzed on August 4 that NH Investment & Securities' capital adequacy is expected to be improved and its business competitiveness and liquidity management capabilities are expected to be strengthened as a result of the 650 billion won rights offering.
On July 31, NH Investment & Securities' board of directors decided to proceed with a rights offering of approximately 650 billion won. The offering will be conducted through a third-party allotment method, with the largest shareholder, NongHyup Financial Group, underwriting the entire amount. As a result, NongHyup Financial Group's stake in NH Investment & Securities is expected to increase from 57.54% at the end of March 2025 to 61.9% after the rights offering. Following the capital increase, NH Investment & Securities' equity capital will be significantly expanded, exceeding 8 trillion won.
Korea Ratings Corporation stated, "The rights offering of 650 billion won will expand the company's equity capital, thereby improving its capital adequacy indicators. The funds raised through the rights offering are planned to be used as resources for retail loans and investment banking (IB) non-trading asset investments. This improvement in capital strength is expected to enhance business competitiveness."
The agency further commented, "The inflow of funds from the rights offering is expected to strengthen liquidity management capabilities in the short and medium term. If IMA approval is granted, unlike issued notes, it will be possible to secure long-term funding, which is also positive from the perspective of diversifying the funding base and matching the maturity of long-term investment assets with liquidity."
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