SNT Holdings Issues Convertible and Exchangeable Bonds... Lays Out New Financial Strategy

SNT Holdings Issues 30 Billion Won in Convertible Bonds and 118.4 Billion Won in Exchangeable Bonds Backed by Subsidiary Shares
Securing Funds to Strengthen Holding Company Structure Through Asset Expansion and Invest in Overseas and Future Growth Engines

SNT Holdings has simultaneously decided to issue convertible bonds and exchangeable bonds secured by its subsidiary shares.

On December 11, the board of directors resolved to issue convertible bonds worth 30 billion won (conversion price: 63,086 won, 475,541 shares (3.1%)), exchangeable bonds backed by SNT Dynamics shares owned by the holding company worth 77.1 billion won (exchange price: 49,871 won, 1,546,994 shares (4.7%)), and exchangeable bonds backed by SNT Energy shares worth 41.3 billion won (exchange price: 42,605 won, 968,293 shares (4.7%)), for a total issuance of 148.4 billion won, according to a public disclosure.

The company explained that the purpose of this issuance is to strengthen the holding company structure by improving its financial structure through asset expansion, while simultaneously securing funds for investment in new technologies to ensure sustainable growth.

Despite the current high interest rate environment caused by the recent tightening in the bond market, the company assessed that it can secure the necessary funds while maintaining financial soundness by raising capital under ultra-low interest rate conditions, with a coupon rate of 0% (guaranteed yield to maturity of 1%).

A key feature of these convertible and exchangeable bonds is that they do not include a refixing clause to adjust the conversion or exchange price in the event of a decline in share price, and they are issued at a premium to the reference price, thereby minimizing shareholder value dilution.

The company expects that this issuance will serve as an opportunity to address the undervaluation in the market that has arisen due to the low proportion of freely tradable shares.

In particular, the company stated that the holding company's standalone book value per share (BPS) is expected to increase by about 5,300 won as a result of this issuance, which in itself contributes to enhancing shareholder value.

Following the 90 billion won exchangeable bond issuance on July 14, IMM Credit & Solutions also participated as the investor in this second issuance, acquiring the entire amount through a private placement.

A representative from the holding company stated, "Regarding ICS's additional investment while there is still an outstanding balance from the previous exchangeable bond investment, we understand that ICS has a positive outlook on the growth prospects of SNT Group, which focuses on the defense and energy sectors as its main businesses."

The convertible bonds are scheduled to be issued on January 9, 2026, and the exchangeable bonds on January 16, 2026, with both maturing two years and three months after issuance.

SNT Holdings logo.

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