HKFoods Considers Issuing New Capital Securities, Redeeming 2018 Securities

HKFoods Plc is evaluating the issuance of new unsecured hybrid capital securities, with an expected size of approximately EUR 20 million. The potential issuance is contingent on market conditions and is anticipated to occur in the near future. These hybrid instruments are subordinated to certain other debt obligations and are treated as equity on the company's balance sheet, without conferring shareholder rights or diluting existing ownership.

The primary purpose for the net proceeds from this potential issuance is to refinance the company's outstanding capital securities, which were issued on September 17, 2018. HKFoods is also considering exercising its option to redeem these existing securities. A formal notice for the redemption will be issued after the successful completion of the new capital securities issuance. Nordea Bank Abp and OP Corporate Bank plc are acting as joint lead managers for the potential new issuance.

HKFoods, with 110 years of experience, is a food company employing approximately 3,000 professionals. Its focus is on responsible, locally produced food. In 2024, the company reported net sales of EUR 1 billion. It is actively developing more climate-friendly food production methods.