Enzychem Lifesciences, Early Redemption of 40.5 Billion Won Convertible Bonds

Holding over 200 billion KRW in funds as of the first half
Expecting annual interest income of up to 9 billion KRW or more

[Asia Economy Reporter Hyungsoo Park] Engchem Life Sciences announced on the 8th that it acquired convertible bonds following the exercise of an early redemption right worth 40.5 billion KRW on the '2nd series convertible bonds (CB)' issued in 2020.

Engchem Life Sciences raised the repayment funds by utilizing its cash holdings and low-interest deposit-secured loans. As of the first half of this year, Engchem holds deposit balances exceeding 200 billion KRW. These funds were placed in high-interest fixed deposits.

An Engchem representative stated, "Despite having sufficient deposit balances, we utilized low-interest deposit-secured loans to avoid interest losses caused by early termination before maturity," adding, "The deposit-secured loans are scheduled to be fully repaid in the first quarter of next year when the collateral deposits mature."

The market fixed deposit interest rates are above 5% and are expected to rise further. Engchem anticipates annual interest income exceeding 9 billion KRW due to the high fixed deposit rates.

The Engchem representative also said, "Starting with the expected renovation of the Jecheon plant early next month, we will drastically improve the profitability of the active pharmaceutical ingredients (API) sector through increased API sales and reduced imported raw material costs."

They emphasized, "We will strive to generate operating revenue in earnest."

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