KR Motors Co., Ltd. (KOSE:A000040) announced a private placement of 19,531,250 common shares at an issue price of KRW 512 per share for proceeds of KRW 10,000,000,000, and series 49 unguaranteed private convertible bonds for proceeds of KRW 27,000,000,000, for gross proceeds of KRW 37,000,000,000 on December 18, 2018. The transaction will involve participation from returning investor Sib Co., Ltd. for shares and Meritz Securities Co., Ltd. (KOSE:A008560) for bonds. The bonds will have a maturity date of December 26, 2021.

The bonds have a coupon rate of 1% and yield to maturity rate of 5%. The transaction is expected to close on December 26, 2018. The shares will be issued through third party allotment, will carry a face value of KRW 500, and will be issued at a premium.

The shares have a hold period of one year. Post the closing of the transaction, the shares of the company will increase from 128,982,090 to 148,513,340 shares. The transaction was approved by the board of directors of the company.