Seoul Food Industrial.Co.,Ltd (KOSE:A004410) announced a private placement of 17th series unregistered coupon unguaranteed private convertible bonds for gross proceeds of KRW 5,000,000,000 on December 15, 2017. The transaction will include participation from Hanyang Securities Co. Ltd. (KOSE:A001750) for gross proceeds of KRW 1,500,000,000, Shinhan Capital Co., Ltd. for gross proceeds of KRW 1,000,000,000, KB Securities Co.,Ltd for gross proceeds of KRW 1,000,000,000, Industrial Bank of Korea (KOSE:A024110) for gross proceeds of KRW 1,000,000,000, NH Investment & Securities Co., Ltd. (KOSE:A005940) for gross proceeds of KRW 500,000,000.

The bonds are issued at par and carry a coupon rate of 1%. The bonds have yield to maturity of 3% and would mature on December 19, 2020. The bonds are fully convertible into 17,123,287 shares of the company at a fixed conversion price of KRW 292 between a period of December 19, 2018 to November 19, 2022.

The transaction has been approved by the board of directors of the company. The transaction is expected to close on December 19, 2017.