Jin Air to Issue 180 Billion KRW in Paid-in Capital Increase and Perpetual Bonds to Improve Financial Structure

[Asia Economy Reporter Dongwoo Lee] Jin Air announced on the 12th that it held a board meeting and resolved to conduct a paid-in capital increase worth 108.4 billion KRW and issue 75 billion KRW of perpetual bonds.

This paid-in capital increase will proceed through a rights offering to existing shareholders followed by a general public offering of any unsubscribed shares, issuing 7.2 million new shares at 15,050 KRW per share. The record date for new share allocation is September 24, and the payment date is November 9.

Subscription for existing shareholders will be from November 1 to 2, and the general public subscription will be from November 4 to 5. The lead underwriters are Korea Investment & Securities and Kiwoom Securities, jointly responsible.

Upon completion of the paid-in capital increase, Jin Air's total issued shares will increase from the existing 45 million shares to 52.2 million shares.

Subsequently, Jin Air will issue 75 billion KRW of new capital securities (perpetual bonds) through a private placement. The maturity is 30 years, and the issuance date is scheduled for the 20th of this month. Although perpetual bonds have a maturity date, the issuer can continuously extend the maturity, so they are recognized as equity on the accounting books.

Jin Air plans to expand its capital by a total of 183.4 billion KRW within this year through this paid-in capital increase and perpetual bond issuance to improve its financial structure.

Jin Air stated, “We will respond to the uncertain business environment based on active financial soundness management and preemptive liquidity securing in preparation for the post-COVID-19 era.”

This content was produced with the assistance of AI translation services.