• Kina Securities Ltd to issue unsecured subordinated debt securities (Bonds) in Papua New Guinea
• Bonds to be listed on the PNGX Debt Market
• Proceeds to be used for general corporate purposes
• Bonds to constitute Tier 2 Capital under BPNG regulations

Kina Securities Limited (KSL) has announced a proposal to issue unsecured subordinated debt securities (Bonds) pursuant to an information memorandum in Papua New Guinea. The Bonds will be listed on the PNGX Debt Market operated by PNGX Markets Limited. KSL intends that the Bonds will constitute Tier 2 Capital as described in the Prudential Standards on Capital Adequacy (1/2003) issued by the Bank of Papua New Guinea (BPNG), which apply to KSL. The proceeds of the capital raising will be used for general corporate purposes. The Offer will only be open to eligible investors in Papua New Guinea, as defined under the Capital Market Act 2015 and the Securities Commission (Wholesale Corporate Bonds excluded issues and offers) Order 2022. KSL has received approval from the Securities Commission of Papua New Guinea in respect of the Bond complying with the terms of the Order. The proposed key terms of the Bond Issue include a fixed coupon of 7.55% per annum, payable semi-annually, and a maturity date on the 10th anniversary of the date the Bonds are approved for trading on the PNGX Debt Market. The Bonds will be subordinated debt obligations of KSL, ranking after the claims of secured creditors, preferred creditors, and unsecured, unsubordinated creditors. KSL will have the right to redeem all or some of the Bonds prior to the Maturity Date, subject to certain conditions and BPNG approval.

KSL intends to raise PGK 235,000,000 through the Bond Issue, which will be used for general corporate purposes. The Bonds will have a 10-year maturity and a fixed coupon of 7.55% per annum, payable semi-annually.