Hana Capital and Financial Group to Expand Capital by 320 Billion Won... "Paying Off Debt and Raising BIS Ratio"

Hana Capital and the Financial Group announced through a public disclosure on the 24th that they have decided to issue a total of 320 billion won in hybrid capital securities. Hybrid capital securities are debt securities that have no maturity or a very long maturity, and are thus recognized as 'capital' rather than liabilities in accounting.

According to the Financial Supervisory Service's electronic disclosure system, Hana Capital will issue 50 billion won in private placement bond-type hybrid capital securities (the 487th). The raised funds are scheduled to be used entirely to pay off existing debt (debt repayment funds).

The coupon rate is 5.40% per annum, and the maturity date is up to July 30, 2056 (30 years). Early repayment (call option) can be exercised at Hana Capital's discretion starting from July 30, 2031, which is 5 years after the issuance date. The subscription and payment date is July 30, 2026, and the lead managers are KB Securities and Korea Investment & Securities. The issuance amounts by underwriter are 10 billion won for KB Securities, 10 billion won for Korea Investment & Securities, and 30 billion won for Hana Capital KDB 1st LLC.

The Financial Group resolved to issue 270 billion won in public write-down contingent capital securities (hybrid capital securities). The purpose of the financing is to increase Additional Tier 1 capital to enhance the BIS capital adequacy ratio and secure operating funds.

The final issuance amount of the Financial Group will be determined within the Board of Directors' resolution limit of up to 400 billion won, depending on the results of future bookbuilding. It is in the form of a perpetual bond with no fixed maturity date, and is subject to early repayment upon approval by the Governor of the Financial Supervisory Service within a period of 5 to 10 years from the issuance date. The coupon rate, subscription date, payment date, and lead managers will be determined later based on bookbuilding and market conditions.