Daegu Bank to sell 270 bln won in hybrid bonds

SEOUL, Dec. 23 (Yonhap) -- South Korea's regional lender Daegu Bank said Tuesday it will sell 270 billion won (US$199.4 million) worth of hybrid bonds in an effort to lift its capital base.

The 30-year bonds will carry an interest rate in the mid 8-percent level, and
sales will start next month, the lender said. Hybrid bonds refer to securities
combining qualities of both debt and equity.
"The proceeds from the bond sale will help raise our capital adequacy ratio to 12
percent from 10.7 percent," a bank official said.
The Financial Services Commission, the nation's financial watchdog, said earlier
Tuesday it will allow local banks to boost hybrid bond issuances to 30 percent of
its Tier 1 capital from 15 percent to help them raise their capital adequacy
ratios as the global economic turmoil has eroded their financial health.
pbr@yna.co.kr
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