ABL Life Issues 120 Billion KRW Subordinated Bonds

[Asia Economy Reporter Changhwan Lee] ABL Life Insurance announced on the 23rd that it will issue subordinated bonds worth up to 120 billion KRW to secure solid capital stability and establish a foundation for sustainable growth.

The subordinated bonds will be issued through a public offering, ranging from a minimum of 63 billion KRW to a maximum of 120 billion KRW, scheduled for issuance on the 29th. The credit rating of the subordinated bonds is A0 (stable), with a fixed interest rate of 6.7% paid monthly, and a maturity of 10 years, but the issuer may redeem the bonds after 5 years.

ABL Life Insurance expects that the capital raised through the issuance of subordinated bonds will provide a foundation for sustainable growth by expanding operations and investments, and enhance more solid capital stability under the new international accounting standards (IFRS17) and the capital adequacy system (K-ICS) to be introduced next year.

An ABL Life Insurance official stated, “ABL Life Insurance has been establishing and implementing a capital management plan since 2021 to proactively respond to the new system to be introduced next year, and as of the end of June this year, it holds a stable Risk-Based Capital (RBC) ratio of 210.3%. This issuance of subordinated bonds is aimed at laying a foundation for more sustainable future growth.”

Meanwhile, the ABL Life Insurance labor union, sympathizing with the company’s purpose of issuing subordinated bonds and efforts to expand the growth foundation, plans to participate in purchasing the subordinated bonds by utilizing 500 million KRW from the union’s special reserve fund.

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