KB Financial Group Finalizes KRW 433 Billion Subordinated Bond Issuance (Rate 4.50%)
- KB Financial Group finalizes 14th issuance of subordinated Tier 2 bonds (new type capital securities): amount increased from KRW 405B to 433B reflecting demand forecast results
- Final coupon rate set at 4.50% (fixed for first 5 years, then reset every 5 years based on 5-year treasury yield + 0.79% spread)
- BIS ratios as of end-2025: CET1 13.82% (unchanged), Tier1 15.33% (+0.12%p), Total capital 16.32% (+0.12%p) – capital adequacy strengthened
- Proceeds of KRW 433B fully used for debt repayment (refinancing KRW 446B maturing in 2026)
- Credit rating AA- from KIS, NICE, KR – maintaining excellent credit quality
- Perpetual bond with issuer call option after 5 years (subject to FSS approval)
- Full write-down trigger upon designation as financially troubled institution (contingent capital feature)
- Demand forecast subscription ratio 1.07:1 (total demand 433B, 40 bids) – satisfactory demand confirmed
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KOSPI Filing Information
- Filing: [Confirmation of Issuance Terms] Securities Registration Statement (Debt Securities)
- Company: KB Financial Group (105560)
- Submission: KB Financial Group Inc.
- Receipt: 05-08-2026