Cleverse Issues 12 Billion Won Perpetual Exchangeable Bonds to "Improve Financial Structure"

Convergence thinking platform Creverse announced on the 19th that it will issue 12 billion KRW worth of exchangeable bonds (EB) with no maturity.

In the case of perpetual exchangeable bonds, the issuing company can classify the investment amount as capital, which is positive from the issuer's perspective. However, from the investor's perspective, the issuance conditions can be more burdensome than general exchangeable bonds, so most issuances are made by large corporate groups with high credit ratings. Considering this, the company explained that the successful issuance of Creverse's perpetual exchangeable bonds can be seen as a measure of market trust.

Also, unlike other companies' cases, Creverse set the conversion period to stocks at 21 months after issuance, the first in the industry. This reduces concerns among existing shareholders about short-term overhang (excess supply) issues and secures a period during which the company can convert to stocks after growth, which is a distinguishing feature. Instead, from the investors' perspective, they can secure Creverse's dividend income in the form of interest during the non-conversion period, so the market evaluates this as a win-win situation in terms of stock price stabilization for the company and minimum profit guarantee for investors.

Since last month, Creverse's entry achievements in the Vietnam market have become visible, and coverage in the domestic education market is also expanding through entry into the English as a Foreign Language (EFL) market.

Jinbin Kim, Vice President and Chief Financial Officer (CFO) of Creverse, said, “Creverse will secure future growth engines by expanding coverage in domestic and overseas education markets, and through this investment, will improve its financial structure by reducing the debt ratio. We will secure cash and utilize these resources for Creverse’s growth engines to strengthen both internal and external aspects.”

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