iM Securities announced the issuance of 150 billion won in hybrid capital securities to secure additional revenue generation capacity. The issuance represents 13% of the company's consolidated equity as of Q1 2026. The capital raise aims to expand operations in bonds and over-the-counter derivatives while strengthening investment banking and brokerage divisions. Financial holding companies with banking subsidiaries have recently announced plans to issue hybrid capital securities, which are recognized as equity for accounting purposes.
iM Securities Issues Two Tranches of Hybrid Capital Securities
iM Securities will issue two types of private placement hybrid capital securities this month, with 30-year maturities. The first tranche totals 60 billion won at an annual interest rate of 5.90%, while the second tranche amounts to 90 billion won at 5.68% annually. Interest payments will be made quarterly for both tranches.
Hybrid capital securities possess characteristics of both equity and debt instruments. While they have defined maturity dates, issuers can extend maturities at their discretion, allowing the securities to be recognized as equity for accounting purposes.
Capital Expansion to Boost NCR to 478%
Upon completion of the capital raise, iM Securities' equity capital will increase to approximately 1.29 trillion won. The company projects its Net Capital Ratio (NCR) will rise 98 percentage points to 478%, significantly improving capital adequacy indicators.
The 150 billion won issuance represents a substantial capital injection relative to the company's existing equity base from Q1 2026.
iM Securities Plans Capital Deployment Across Multiple Business Lines
iM Securities stated it will utilize the increased capital to expand its bond and over-the-counter derivatives operations. The company's IB/PF division will strengthen its focus on large-scale and high-quality deals. The securities firm also plans to develop its investment brokerage division to secure future growth drivers.
An iM Securities official stated, "We have decided to expand capital through hybrid capital securities issuance to secure a sustainable growth foundation. We will secure operational competitiveness through efficient use of capital secured based on preemptive risk management."
Financial Holding Companies Pursue Hybrid Securities Issuances
Financial holding companies with banking subsidiaries have recently announced plans to issue hybrid capital securities, which are recognized as equity for accounting purposes. Hana Financial Group and Woori Financial Group have established plans to issue public hybrid capital securities in the first half and within the year, respectively. KB Financial Group is reviewing additional issuances in the second half.
FAQ
What is the total amount of hybrid capital securities iM Securities is issuing?
iM Securities is issuing 150 billion won in hybrid capital securities, consisting of two tranches: 60 billion won at 5.90% annual interest and 90 billion won at 5.68% annual interest, both with 30-year maturities.
How will iM Securities' capital position change after this issuance?
After the capital raise, iM Securities' equity capital will increase to approximately 1.29 trillion won, and the Net Capital Ratio (NCR) is projected to rise 98 percentage points to 478%, representing a significant improvement in capital adequacy indicators.
