KB Financial Group (105560) will issue ₩400bn of perpetual write-down contingent capital securities carrying a 4.85% coupon, with subscription and payment both falling on 31 August, the company said in an amended filing on Tuesday.
The size rose from the ₩270bn first disclosed on 23 July, after book-building. The securities are the group's fifteenth such series, sold by public offering, with Hanyang Securities and Kiwoom Securities as lead underwriters.
The July filing had left both the amount and the rate open, saying each would be set by demand within a ₩400bn ceiling the board approved. Both have now landed at that ceiling.
At 4.85% the ₩400bn carries roughly ₩19.4bn of distributions a year, equal to 0.33% of the ₩5,840.7bn KB Financial (105560) earned in net income in FY2025.
The securities have no maturity date. KB may redeem after five years, and quarterly after that, only with prior approval from the governor of the Financial Supervisory Service, and the filing states that no term creates an expectation of redemption.
Should KB be designated a troubled financial institution, principal and interest are written down in full on the third business day, which the terms say does not count as a default. The proceeds are raised as Additional Tier 1 capital.
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| Symbol | Last Price |
|---|---|
| 105560KB Financial Group Inc. | ₩172,000 -3.3% |