iM Securities to Issue 150 Billion Won in Hybrid Capital Securities for Capital Expansion

iM Securities is moving to raise capital in order to establish a foundation for sustainable growth.

On July 9, iM Securities announced that it will issue hybrid capital securities worth a total of 150 billion won. This issuance is intended to secure additional profit-generating momentum, and iM Securities will expand its capital base by an amount equivalent to 13% of its total consolidated capital as of the first quarter of this year.

Once the capital increase is completed, iM Securities’ equity capital will grow to approximately 1.29 trillion won, regaining its position as a mid-sized securities firm in the market. In addition, its Net Capital Ratio (NCR) is expected to improve significantly, rising by 98 percentage points to reach 478%.

Within this month, iM Securities plans to issue two types of privately placed hybrid capital securities, each with a 30-year maturity, in amounts of 60 billion won and 90 billion won, respectively. The coupon rates are set at 5.9% and 5.68% per annum, with interest paid every three months. Hybrid capital securities have characteristics of both stocks and bonds. Although they have a designated maturity, the maturity can be extended at the issuer’s discretion, so they are recognized as capital under accounting standards.

iM Securities aims to efficiently utilize its increased capital by expanding and growing its operations in bonds and over-the-counter derivatives. The investment banking (IB) and project financing (PF) divisions will focus on strengthening operations centered on large-scale and high-quality deals, while also expanding the investment brokerage division to secure future growth engines.

A representative from iM Securities commented, “We have decided to raise capital through the issuance of hybrid capital securities in order to secure a sustainable growth foundation,” adding, “We will enhance our business competitiveness by efficiently utilizing the secured capital based on proactive risk management.”

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