Hana Financial Group Starts Investing in Restructuring Target Companies... "Supporting SMEs Struggling Due to COVID-19"

Group Affiliate Hana F&I Starts CR Investment
Establishes 50 Billion KRW Blind Fund... Preparing Follow-up Fund of 100 Billion KRW

[Asia Economy Reporter Minwoo Lee] Hana F&I, an affiliate of Hana Financial Group, is starting to invest in companies subject to restructuring. Through this, it aims to support small and medium-sized enterprises (SMEs) struggling due to COVID-19.

On the 22nd, Hana F&I announced that it will begin corporate restructuring (CR) investments to expand its business areas. CR investment refers to investing in companies subject to restructuring through a "Corporate Financial Stability Private Equity Fund (PEF)" established under the Capital Markets Act to improve corporate financial structure and normalize management.

Through CR investments, the company plans to support the improvement of financial structures and strengthening of business capabilities for SMEs facing economic difficulties such as decreased sales and deteriorated profitability due to COVID-19.

Hana F&I, which completed registration as a general partner (GP) with the Financial Supervisory Service in November last year, plans to make its first investment this month through the "HF No.1 Corporate Financial Stability PEF." The investment target is a small specialized construction company with expertise in earthworks and facilities, and the investment will be conducted through secured loans and convertible bonds (CB).

The "HF No.1 Corporate Financial Stability PEF" is a blind fund worth 50 billion KRW. Hana F&I will solely act as the general partner (GP), and three institutional investors, including Hana Financial Group affiliates and external institutional investors, will participate as limited partners (LPs). Additionally, following the first fund, a subsequent fund exceeding 100 billion KRW is planned to be established.

A Hana F&I official stated, "By starting corporate restructuring (CR) investments this time and expanding our business areas, we plan to advance as an investment management company that performs tasks across all sectors of the non-performing loan (NPL) market."

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