Fine Besteel Co., Ltd. (KOSE:A133820) announced a private placement of series 1 non-guaranteed private equity convertible bonds with bearer interest for a gross proceeds of KRW 10,000,000,000 on April 28, 2021. The transaction will include participation from CapitalOne Shipbuilding Structure Improvement Fund, a fund managed by Capital One Co., Ltd. for KRW 3,000,000,000, BK Shipbuilding Investment Fund, a fund managed by BK Investment Corp. for KRW 2,000,000,000, Shinhan Investment Corp.

for KRW 1,000,000,000, Hanyang Securities Co. Ltd. (KOSE:A001750) for KRW 1,000,000,000, Suseong Asset Management Co., Ltd.(in the position of discretionary investment business) for KRW 1,000,000,000, Korea Investment & Securities Co., Ltd.(This is Fund 1, this is Fund 2 in the trustee status) for KRW 2,000,000,000. The bonds have yield to maturity of 1%.

The bonds will mature on April 30, 2024. The bonds will be 100% converted into 3,177,629 common shares at a fixed conversion price of KRW 3,147 per share for an equity stake of 9.71%. The conversion period is from April 30, 2022 to March 30, 2024.

The payment date of the transaction is April 30, 2021. The securities issued in the transaction are subject to a lock up period of one year. The transaction has been approved by the board of directors of the company.