BNK Financial: Decision on issuance of bail-in contingent capital securities
Decision on the issuance of bail-in contingent capital securities
|Subsidiary company||Kyongnam Bank||important matters to report|
|1. Type of securities||Serial number||5||Type||Bearer-type, unsecured, unsecured and ball-in-type national contingent equity securities (new equity securities)|
|2. Aggregate face value of bonds (or electronically registered bonds) (KRW)||135,000,000,000|
|2-1 (Issuance of bonds abroad)||Total face value of bonds (or electronic registered bonds) (currency unit)||–||–|
|Basic exchange rate, etc.||–|
|Name of the exchange (if listed abroad)||–|
|3. Purpose of financing||Investment in facilities (KRW)||–|
|Acquisition of business (KRW)||–|
|working capital (KRW)||135,000,000,000|
|Debt repayment (KRW)||–|
|Acquisition of securities issued by other companies (KRW)||–|
|Other purposes (KRW)||–|
|4. Interest rate||Coupon rate (%)||–|
|Yield to maturity (%)||–|
|5. Bond maturity date||–|
|6. Method of interest payment||
– Interest (dividends) on these securities are paid in arrears every three months from the date of issue until the day immediately preceding the maturity date. However, if the due date for payment of interest (dividends) falls on a public holiday, it will be paid on the next following business day, and even if payment is so delayed, interest (dividends) is not calculated and paid separately. for the number of days late.
– No interest (dividend) is paid on these securities once they reach maturity. However, if the maturity falls on a day when the bank is closed, interest (dividends) is paid for the period up to the day before the next business day, and if this security is prepaid, the issuer does not pay any interest (dividends) after prepayment.
-Interest (dividends) relating to this security are deducted from the dividends available for payment on the basis of the Detailed Rules relating to the application of the supervision of banking activity (Criteria for the calculation of the capital ratio for risk-weighted assets based on credit and operational risk (based on Basel III)- 6 Additional Tier 1- b. Criteria for recognition of Additional Tier 1.
– Conditions under which the payment of interest (dividends) is suspended
(2) The issuer is free to cancel the interest (dividend) payment for this security, and the cancellation of the interest (dividend) payment does not constitute any form of constraint on the bank other than the relevant dividend linked to holders of common shares.
(3) Cancellation of the above interest (dividend) is not considered a cause of default or bankruptcy. The issuer will have full rights to use the amount canceled to fulfill its obligations due.
|7. Main method of payment||
– As for the provisional redemption of these securities, the issuer can decide independently whether to proceed with the redemption, and this must be approved beforehand by the Governor of Financial Surveillance under any of the following conditions:
(1) When, taking into account the profitability of the issuer, etc., the security is replaced by capital of high or equivalent quality deemed sufficiently bearable?
(2) Where the capital adequacy ratio exceeds the capital adequacy ratio specified in paragraph 4 of article 26 of the Banking Supervision Regulations even after early redemption of such securities
– The provisional reimbursement of this file at the option of the issuer can only be carried out according to the methods specified at the time of the issue of this bond subject to obtaining the prior agreement of the Governor of Financial Surveillance after five years from from the date of issue. If the maturity falls on a closed day of the issuer, the principal is paid on the next business day.
– Further, no condition is added to the bond of this deal whereby the investor expects the redemption to be made, and no charge is imposed to induce the issuer to make the redemption.
|8. Bond Issuance Method||Public offer|
|9. Debt adjustment details||Cause of debt adjustment||Occurs when the issuer is designated as an insolvent financial institution under the Financial Sector Structural Improvement Act|
|Scope of debt adjustment||Total face value of bonds|
|Procedures Used to Determine the Scope of Debt Adjustment||When a cause for rescheduling of the debt of the issuer arises, these securities will be definitively amortized in full, at which time the amortization of these securities will not be considered as a cause of non-performance or default. The amortization will enter into force and become effective on the third business day from the date on which the cause for rescheduling the debt occurs.|
|9-1. Option details||
– Type of option: Call option
– Option exercised by: Issuer
– Option structure: Although the maturity date of the bond is perpetual, there is a five-year call option.
(Provisional redemption is only available in cases where Financial Supervisory Service Governor approval is obtained in advance at the issuer’s option after the option’s expiration date)
|10. Date of subscription||–|
|11. Date of payment||–|
|12. Primary Subscriber||–|
|14. Date of board resolution (decision date)||2022-04-26|
|– Presence of external directors||Present (No.)||5|
|– Presence of the statutory auditors (members of the audit committee)||Present|
|15. Subject to filing of title registration statement?||Yes|
|16. Grounds for Exemption from Filing of Securities Registration Statement, if Exempt||–|
|17. Details of securities lending and borrowing transactions related to the issuance of securities abroad||–|
|18. Subject to declaration to the Fair Trade Commission?||Nope|
|19. Other Considerations in Investment Decisions||
– The above disclosure details are intended to improve the BIS Total Capital Ratio and Tier 1 Capital Ratio by expanding Additional Tier 1.
– “2. Total nominal amount of the bonds” above will be determined according to the results of the demand forecast within the framework of the issue amount decided by the Board of Directors.
– The coupon rate and yield to maturity of “4. Interest Rate” will be determined by reflecting the market rate at the time of issuance based on the results of demand forecasts.
– “5. The maturity date of the bonds” above is not specified, and it is assumed to have matured on the earliest of the following dates.
– As for “5. Maturity of the bonds”, notwithstanding the perpetual form, the purchase option is granted after five years, and the installment can be made at the option of the issuer on each interest date (dividend at three months) after the expiration date of the option is reached.
– “5. Maturity date of the bonds”, “10. Subscription date” and “11. Payment date” above will be determined according to the schedule of consultation with the supervisory authority and the conditions of the primary market .
– “12. Managing Subscriber” has not yet been confirmed, and will be selected approximately one month before the subscription date within the range permitted by the relevant laws and regulations.
– For more details concerning these securities, please refer to the Bank’s securities declaration form which will be sent to you later.
– Communication of information on the material elements of the management of the subsidiary
[Details of Issuance to Designated Purchasers]
|name||Relationship with the company or the main shareholder||Aggregate face value of bonds (or electronically registered bonds) (KRW)|
[Intended Use of Funds]
|Improve BIS capital adequacy ratio and Tier 1 capital ratio by expanding other Tier 1 capital, using funds raised for working capital.|
BNK Financial Group Inc. published this content on April 28, 2022 and is solely responsible for the information contained therein. Distributed by Audienceunedited and unmodified, on April 28, 2022 07:44:06 UTC.
Public now 2022
BNK FINANCIAL GROUP INC. Technical Analysis Trends
|Short term||Middle term||Long term|
Evolution of the income statement
|Number of analysts||17|
|Last closing price||KRW7,700.00|
|Average target price||KRW10,458.82|
|Average Spread / Target||35.8%|