KG Mobility plans to secure operational funds for new vehicle development and the acquisition of future automotive technologies by issuing approximately KRW 108.1 billion in private convertible bonds (CB).

Issuance Terms and Scale

KG Mobility announced on the 3rd that its board of directors resolved on August 2 to issue KRW 108,142,500,000 worth of the 124th unregistered, unsubordinated private convertible bonds with warrants. The bonds carry a coupon rate of 0.0% and a maturity yield of 1.0%. No interest accrues before maturity, and a lump-sum repayment of 103.0415% of the principal will be made on the maturity date of August 11, 2029.

Use of Proceeds

The entire amount raised will be used as operational funds. The company plans to invest in new vehicle development, strengthening competitiveness in future automotive technologies, advancing production and quality, and expanding its global business. The annual expenditure plan is KRW 30 billion in 2026, KRW 50 billion in 2027, and KRW 28.142 billion in 2028 and beyond.

Target of Issuance and Conversion Terms

The CB will be issued through a private placement to Chery Global Innovations (Hong Kong) Limited. The conversion price is set at KRW 2,760 per share, and if conversion rights are fully exercised, 39,182,065 new common shares will be issued. This represents 16.22% of the current total outstanding shares of 202,374,912. The conversion request period runs from August 11, 2027 to July 11, 2029.

Guarantees and Filing Exemption

In the event of default on principal and interest obligations, KG EcoSolution will provide a joint surety to pay the unredeemed principal, agreed interest, and late interest. Additionally, the private placement is exempt from filing a securities registration statement.