Daejin Advanced Materials Issues 15.8 Billion KRW CBs... "Accelerating Growth"

On August 7, Daejin Advanced Materials, a global advanced materials specialist, announced that it had issued convertible bonds (CB) worth a total of 15.8 billion KRW.

With this issuance, the company will accelerate its mid- to long-term growth strategies, which include global facility investment, expansion of R&D personnel, and improvement of its financial structure.

The CBs were issued in two tranches on the same day: the 8th tranche for 6.5 billion KRW and the 9th tranche for 9.3 billion KRW. Of the funds, 4 billion KRW will be used as facility capital to invest in CNT (carbon nanotube) equipment for the company’s U.S. subsidiary. In the United States, CNT conductive materials are classified as hazardous materials, making it essential to set up dedicated facilities to pass corporate approval reviews. Through this, the company aims to proactively enhance its responsiveness to global customers and accelerate its entry into the next-generation advanced materials market.

Operating capital of 3.8 billion KRW will be focused on securing outstanding research and development (R&D) personnel. The company plans to strengthen its mid- to long-term growth engine by accelerating the internalization of advanced materials technology and the development of new applications.

In addition, 8 billion KRW from the 9th tranche CB will be used to repay existing loans, thereby achieving both improvement of the financial structure and enhancement of liquidity. The CBs come with a 100% call option, allowing for full redemption and cancellation after a certain period. As they are issued with zero interest, the financial burden has been minimized.

The company stated that the issuance of CBs worth 15.8 billion KRW is a result of market confidence in its technological capabilities and growth potential, and that the active participation of investors has enabled it to secure stable funding and lay the foundation for accelerated growth.

A company representative said, "With this zero-interest convertible bond issuance, we are now able to simultaneously pursue global facility investment, strengthen R&D, and achieve financial stabilization. This reflects the market’s recognition of our technological prowess and growth potential," adding, "Based on the capital secured, we will enter a more stable and rapid growth trajectory in the global advanced materials market."

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