PaperCorea Inc. (KOSE:A001020) announced a private placement of series 110 Non-guaranteed private convertible bonds with domestic bearer interest for gross proceeds of KRW 20,000,000,000 on August 18, 2020. The bonds will be issued at par. The transaction will include participation from Eugene Investment & Securities Co.,Ltd. for KRW 9,000,000,000, Dongyang Co., Ltd. for KRW 3,000,000,000, Mirae Asset Daewoo Co., Ltd. (KOSE:A006800) for 3,000,000,000, IBK Capital Corporation for KRW 2,000,000,000, BTC I No.

1 2018 Private Equity Partnership for KRW 2,000,000,000, and Hanyang Securities Co., Ltd. for KRW 1,000,000,000. The bonds carry coupon rate of 3.0% have yield to maturity of 6.5%. The maturity date of bonds is on August 20, 2023.

The bonds will be fully convertible into 11,527,377 shares of the company at a fixed conversion price of KRW 1,735. The conversion period will start from August 20, 2021 and end on July 20, 2023. The subscription date and the payment date is August 20, 2020.

The transaction has been approved by the board of directors of the company. The securities issued are subject to restriction of one year from the date of issuance.