HLB Global will issue debt securities recognized as capital (bond-type new capital securities) worth KRW 3 billion and use the proceeds to acquire convertible bonds (CB) issued by HLB.

According to HLB Global on the 6th, the company recently held a board meeting and announced its decision to issue KRW 3 billion (3,000,000,000 won) worth of the '37th Unregistered Unsecured Private Perpetual Convertible Bonds.' The bonds carry zero interest, with both the nominal and maturity interest rates set at 0%. The maturity date is August 18, 2056 (30 years), and unless the company notifies its intention not to extend the maturity by five business days prior to the maturity date, the bonds will be automatically extended for additional 30-year periods under the same terms. There is no limit on the number of extensions.

The entire funds raised will be used to acquire securities of another corporation. HLB Global plans to acquire the '40th Unregistered Unsecured Private Convertible Bonds of HLB (total face value of KRW 3 billion)' held by its largest shareholder, HLB Chairman Jin Yang-gon.

The payment for these bonds will be made in a non-cash offset method, with the HLB CB acquisition price and the subscription price for these bonds being offset against each other. The bonds will be issued to Chairman Jin Yang-gon, and both the subscription date and payment date are set for August 18, 2026.

Meanwhile, the company has not granted early redemption request rights (put options) to the bondholders. Instead, the issuing company may exercise call options for early redemption starting one year after issuance under certain conditions.