DaeChang Steel Co., Ltd. (KOSDAQ:A140520) announced a private placement of first registered unsecured coupon unguaranteed private convertible bonds for gross proceeds of KRW 3,300,000,000 on April 7, 2016. The transaction included participation from new investor POSCO. The bonds are issued at par, will mature on April 7, 2021, carry a fixed annual coupon of 0.5%, with lump-sum redemption of principal on maturity date for the bonds, and yield to maturity of 1.8%.

The bonds are convertible into 776,470 common shares of the company at a rate of 100% and at a fixed conversion price of KRW 4,250 per share for a conversion period starting from April 8, 2017 to April 7, 2021. The transaction was approved by the board of directors.