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Agent Services Information

CB Conversion Agent Service

Introduction

The Korea Securities Depository(KSD) as conversion agent receives a conversion request from a noteholder and notifies the details of conversion to the issuer and its share transfer agent.

Conversion Procedure

Conversion Procedure

  • A noteholder requests conversion into shares to KSD(conversion agent) by presenting the bonds. Provided the bonds are deposited at the International Central Securities Depository(ICSD), the conversion request is made through ICSD. The noteholder also notifies its local custodian of conversion details. These procedures are required for cross-checking regarding the conversion details with each party.

  • KSD(conversion agent) gives conversion details to the issuer and its transfer agent. This is required for the conversion agent in order to help relevant parties issue the corresponding shares.

  • The issuer requests its transfer agent to issue and deliver resultant shares. This is done through submitting a conversion request form in which details are filled to the transfer agent. Information such as the number of shares, noteholders' names are written in the form.

  • After issuing shares in the name of KSD, the share transfer agent notifies it to KSD as the Central Securities Depository(CSD). KSD, in this case, is acting both as a central securities depository and a conversion agent. This helps decrease unnecessary delays that come from different time zones, and enables issuing compainies, transfer agent, common depositories and KRX cooperate to issue such shares.

  • KSD(CSD) delivers shares to the local custodian appointed by the noteholder. The local custodian is notified about the delivery of shares from the noteholder in advance. This delivery is processed by book-entry level through a system called SAFE+.

  • The issuer registers paid-in capital increase with the local registration office. The capital will be contributed to the issuing company(issuer) by its investors.

  • The issuer lists share on the KRX. Prior to listing the shares, relevant forms regarding the issuance, if any, should be submitted to KRX as well. Major conditions such as facial interest rate, issuance amount, redemption period, conversion price should be considered.