Provided by Korea Securities Depository
Last year, the amount of rights exercised by stock-related bonds through the Korea Securities Depository (KSD) was 4173 billion won, up 48.0% from the previous year.
The Korea Securities Depository announced on the 12th that the number of exercise of stock-related bond rights through the Korea Securities Depository in 2021 increased by 18.1% from the previous year to 7,066, and the amount of rights exercised was 4.173 trillion won, an increase of 48.0% from the previous year.
Stock-related bonds refer to bonds that can be converted or exchanged for stocks of the issuer or stocks of other companies secured by the issuer under certain conditions determined at the time of issuance. Investors have the advantage of being able to earn stable interest income by holding bonds when stock prices fall, and realizing profits by converting or exchanging bonds into stocks when stock prices rise.
Looking at the amount of rights exercised by type, convertible bonds (CB) rose 39.9% to 3.190.4 trillion won. EB (exchangeable bond) rose 4.3% from the previous year to 226 billion won, and BW (bond with warrants) rose 150.2% to 720.6 billion won. The number of events also increased by 11.9% for CB to 4538, EB to 278, and BW to 2,250, up 63.5% and 28.1%, respectively.
The top stocks in the exercise amount of stock-related bonds were HMM 191 CB (600 billion won) and Hyundai Doosan Infracore’s 1 WR (new stock warrant, 259 billion won).