ID :
21505
Sat, 09/27/2008 - 12:06
Auther :
Shortlink :
http://m.oananews.org//node/21505
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Kookmin Bank selling bonds to bolster financial health
SEOUL, Sept. 26 (Yonhap) -- South Korea's top lender Kookmin Bank said Friday it is selling 500 billion won (US$429.7 million) worth of bonds to domestic individual investors to beef up its financial status.
The subordinated bonds carry an annual interest rate of 7.45 percent and will
expire in five years and six months, the lender said. The debt sale runs till
Monday.
The bond flotation is designed to keep the so-called capital adequacy ratio, a
measure of a lender's financial health, from weakening due to its conversion into
a holding company, Kookmin said.
The bank has decided to buy back 2.4 trillion won worth of shares from
stakeholders who oppose the shift into a holding firm.
Trading of Kookmin shares was halted on the main bourse on Thursday due to its
transition into a holding company. New shares of the holding company, dubbed KB
Financial Group Inc., will be traded from Monday.
The subordinated bonds carry an annual interest rate of 7.45 percent and will
expire in five years and six months, the lender said. The debt sale runs till
Monday.
The bond flotation is designed to keep the so-called capital adequacy ratio, a
measure of a lender's financial health, from weakening due to its conversion into
a holding company, Kookmin said.
The bank has decided to buy back 2.4 trillion won worth of shares from
stakeholders who oppose the shift into a holding firm.
Trading of Kookmin shares was halted on the main bourse on Thursday due to its
transition into a holding company. New shares of the holding company, dubbed KB
Financial Group Inc., will be traded from Monday.
