In the third quarter of this year, the scale of stock-related bond exercises fell by more than 70% compared to the previous quarter. While the amounts for convertible bonds (CB) and exchangeable bonds (EB) saw significant declines, the exercise amount for warrants (BW) increased.
According to the Korea Securities Depository on October 15, the number of stock-related bond exercises through the depository in the third quarter was 432, a 67.8% decrease from the previous quarter's 1,343. The total exercise amount was 425.4 billion won, down 71.0% from the previous quarter's 1.4686 trillion won.
Looking at the quarterly exercise scale, the exercise amount decreased from 1.7719 trillion won in the first quarter to 1.4686 trillion won in the second quarter, and then to 425.4 billion won in the third quarter. The number of exercises also dropped from 1,823 in the first quarter to 1,343 in the second quarter, and further to 432 in the third quarter.
By type, the number of CB exercises was 254, a 54.4% decrease from the previous quarter's 557. The exercise amount was 219.4 billion won, down 66.5%. EB exercises also saw a decline, with 52 exercises reported, a 72.8% drop from the previous quarter's 191, and an exercise amount of 91.4 billion won, an 87.9% decrease.
In contrast, BW exercises totaled 126, a 78.8% decrease from the previous quarter's 595, but the exercise amount rose to 114.6 billion won, a 93.9% increase from the previous quarter's 59.1 billion won.
Stock-related bonds are securities that allow holders to convert or exchange them for shares of the issuing company or shares of another company held by the issuer, based on predetermined conditions at the time of issuance. If stock prices rise, holders can exercise their rights to realize profits, while if prices fall, they can retain the bonds for interest income.
* This article has been translated by AI.
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