Heungkuk Life to raise 230 billion won through rights offering

Heungkuk Life Insurance's office building in Jongno District, central Seoul [YONHAP]

Heungkuk Life Insurance said Wednesday it will raise 230 billion won ($178.9 million) through a rights offering.

It will sell 2.44 million convertible preferred shares to tsis and Tcast, two unlisted companies, which will invest 200 billion won and 30 billion won, respectively, the insurer said in a regulatory filing.

The move is intended to increase capital after Heungkuk Life exercised a Nov. 9 call option for its dollar-denominated perpetual bonds worth $500 million.

The buyback came about a week after the insurer jolted the debt market by announcing it will delay exercising the call option due to unfavorable market conditions.

Taekwang Industrial initially tried to take part in the capital increase by the insurer but dropped the plan in the face of criticism that it runs counter to shareholder's value.