Meritz Financial (KRX:138040) will issue 202 billion won in domestic unregistered unsecured private placement hybrid capital securities, with a face value of a similar amount.
The bonds carry an initial interest rate of 5.70% per annum, subject to adjustment every five years, with an initial maturity date of Sept. 22, 2056, and automatic 30-year extensions thereafter.
The issuance is part of the group's capital securities issuance limit approved by the board on Dec. 26, 2025, according to a bourse filing on Monday.
The proceeds will be used to repay 150 billion won of the fourth-series capital securities and for other general corporate purposes, with the securities to be issued to Korea Investment & Securities and IM Securities.