Daesung FineTec’s Convertible Bond Issuance: What Happened?

Daesung FineTec will issue its third unregistered, unsecured private convertible bonds worth 7 billion KRW. The conversion price is 1,253 KRW, with a coupon rate of 0% and a maturity rate of 5.0%. Conversion requests can be made starting September 18, 2026. The main investors are AOne Asset Management affiliated funds.

Why Issue Convertible Bonds?: Background and Objectives

Daesung FineTec plans to secure operating funds through this convertible bond issuance and invest in business expansion and R&D. This is interpreted as an attempt to alleviate short-term liquidity burdens and secure long-term growth engines.

Impact of the Convertible Bond Issuance: Opportunities and Risks

  • Positive Impacts:
    • Securing Short-Term Liquidity
    • Investment in Business Expansion and R&D
    • Potential Capital Increase Effect
  • Negative Impacts:
    • Increased Debt Ratio and Financial Burden
    • Possibility of Stock Dilution
    • Deterioration of Investor Sentiment Due to Poor Performance
    • Interest Rate Fluctuation Risk

Investor Action Plan: What to Watch

Investors should closely monitor the following:

  • Fund Usage Plans and Implementation Results
  • Progress of the Monolith Merger and Synergy Effects
  • Whether the Fine Blanking Business Unit Improves Performance
  • Growth and Profitability of the Renewable Energy Business
  • Impact of Exchange Rate and Interest Rate Fluctuations

Daesung FineTec’s future business strategies and performance improvement will be crucial factors in investment decisions.