Xiilab to Raise 10 Billion Won Through Convertible Bonds

What happened

AI infrastructure company Xiilab plans to issue 10 billion won in convertible bonds (CBs) to investors including the National Growth Fund. On Nov. 6, Xiilab said its board approved the issuance of 10 billion won in its first series of unregistered, unsecured, privately placed convertible bonds, with a conversion price of 8,106 won per share and a five-year maturity; the subscription agreement is scheduled for Nov. 10, with payment due Nov. 16. The bonds carry a 0% annual coupon rate and a 0% yield to maturity, allowing the company to raise funds without interest expenses through maturity; they contain no downward conversion price adjustment (refixing) provision. Xiilab said it also secured a call option covering up to 50% of the subscription amount to mitigate dilution for existing shareholders if its share price rises, and investors may exercise their put options starting 30 months after issuance. The bonds will be subscribed by National Growth Fund sub-funds managed by Korea Investment Value Asset Management, DB Asset Management, Suseong Asset Management and Orion Capital Management, totaling 8 billion won, with the remaining 2 billion won from Orion Capital Management's KOSDAQ Venture Fund and other investors. The proceeds will be used to expand the AIDC business from infrastructure deployment into operations, including preparations for growing demand for next-generation GPUs such as Vera Rubin, broadening GPU management capabilities through the proprietary AstraGo platform and generating recurring revenue from operations and management services. The issuance is board-approved but not yet subscribed or paid, so it remains a planned event.

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Source and time

Source: The Elec · 11/6/2026 · View original source