Chokwang Paint Ltd. announced a private placement to issue Series 5 Bearer-Type Non-Guaranteed Private Exchangeable Bonds for the gross proceeds of KRW 10,000,000,000 on January 24, 2024. The transaction will include participation from new investors Korea Investment & Securities Co., Ltd. for KRW 2,000,000,000, NH Investment & Securities Co., Ltd. (In the position of trustee of Funds 1, 2, and 3) for KRW 900,000,000, Samsung Securities Co., Ltd. (In this case, in the position of a trustee of Fund 4) for KRW 600,000,000, Mirae Asset Securities Co., Ltd. (In the position of trustee of Funds 5 and 6 in this case) for KRW 1,500,000,000, Mirae Asset Securities Co., Ltd. (In the position of trustee of Funds 7, 8, and 9) for KRW 2,000,000,000, Shinhan Investment & Securities Co., Ltd. for KRW 1,000,0000,000, SUSUNG ASSET MANAGEMENT Co., Ltd.  for KRW 1,000,000,000 and Samsung Securities Co., Ltd. (In the position of a trustee of Fund 10 in this case) for KRW 1,000,000,000. The Bonds are 100% convertible into 1,461,988 shares at a fixed conversion price of KRW 6,840 from February 26, 2024 to January 19, 2029.

The bonds bear zero coupon rate and zero maturity rate and matures on January 26, 2029. The transaction has been approved by the shareholders of the company and is expected to close on January 26, 2024.