[Alpha Biz=(Chicago) Reporter Kim Jisun] Daishin Securities has formed a fund worth KRW 50 billion to invest in listed mezzanine. Mezzanine means convertible bonds (CB), bonds with warrant (BW), and exchangeable bonds (EB) with the intermediate nature of stocks and bonds. CB are bonds that can be converted into the issuer's existing shares, BW are bonds that have the right to newly print and receive issuer shares, and EB are bonds that can be converted into other company shares held by the issuer.
According to the investment banking (IB) industry on the 31st, Daishin Securities has secured capital firms, securities firms, savings banks and banks as investors (LPs) and is in the final stage of creating a mezzanine fund. A KRW 50 billion commitment to fund investment is scheduled to be completed in the middle of next month.
Daishin Securities, along with Shinhan Capital and JB Woori Capital, will jointly operate the listed mezzanine new technology investment association. The blind fund (a fund created without setting an investment destination) plans to invest in listed CB or BW to make profits. The three operators will invest 35 billion won altogether, while the remaining 15 billion won will be financed by capital firms, securities firms, savings banks and banks.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
