이 기사는 2021년 07월 02일 07:32 thebell 에 표출된 기사입니다.

Korea Development Bank (KDB) is poised to make a 2.3 trillion won ($2 billion) profit from its five-year investment in HMM, a national shipping line, quashing the criticism that the state-controlled lender poured billions into a company that seemed to have little prospect of recovery.

KDB, which holds 300 billion won in convertible bonds issued by HMM, said on Tuesday it would exercise its option to convert debt into equity. Based on the conversion price of 5,000 won per share, 60 million new shares will be issued, which are worth about 2.64 trillion won as of HMM stock’s closing price of 44,300 won on Tuesday.

This represents an unrealized gain of more than 2.3 trillion won for KDB, and is symbolically important as it showed that the state lender’s decision to support the shipping industry was right, as well as that HMM’s restructuring is almost completed.

In December 2016, KDB injected 300 billion won into the then-struggling shipping line. Despite skepticism about the recovery of the company and the overall shipping industry, KDB pushed for restructuring of HMM, with its belief in the importance of shipping as one of the country’s core industries.

The recovery of the company will serve as an example of how KDB’s investment in distressed companies can produce a positive outcome, and is also likely to add momentum to the state lender’s investment activity.

“Giving up gains from exercising the conversion option is breach of trust,” KDB chairman Lee Dong-gull told reporters during a press conference on June 14. “We will use proceeds from the gain to keep investing in distressed and restructuring opportunities and provide policy support.”

KDB’s equity interest in HMM will increase from the current 11.94% to 24.99% after the conversion of bonds into shares. KDB will keep its stake for some time, while exploring options including a sale to private players.

“Nothing has been decided and we haven’t been approached about a sale,” Lee said, adding that the lender was open to a range of options and would discuss the matter with relevant parties. (Reporting by Seul-bong Go)