Toss Bank logo [Courtesy of Toss Bank]
Toss Bank, celebrating its first year as the third app-based lender in Korea, has brought KEB Hana Card onboard through the sixth rights offering since founding for recapitalization and expanded partnership with financial institutions of brick-and-mortar influence.
It would be raising 100 billion won ($75 million) by selling 20 million shares at 5,000 won each.
Payment will be completed by Nov. 29. New shares will go to existing shareholders, including Viva Republica, E-Land World and Korea Federation of SMEs.
KEB Hana Card has joined to help Hana Bank maintain 9.75 percent ownership after the capital increase.
Hanwha Investment & Finance and Korea Electronic Certification Authority would be passing up on the latest offering. Toss Bank’s parent Viva Republica will buy 6.8 million shares at 34 billion won to retain its biggest shareholding in the digital lender and E-Land World will purchase 2 million at 10 billion won.
KEB Hana Card will buy 1.96 million shares at 9.8 billion won. Currently, Toss Bank’s check card is acting as an agent and is also collaborating as a strategic partner of KEB Hana Card. Going forward, the two companies plan to work on various business strategies now that the credit card company will become a shareholder of Toss Bank.
Toss Bank also unveiled promotions to increase the use of its debit cards. For every 5,000 won spent on a Toss Bank debit card at partnered merchants at home and aboard, users will receive 100 won worth of foreign stock or exchange-traded funds (ETFs).
The digital lender has made rapid growth in just a year as shareholders shared the bank’s service to mid to low-credit customer and innovation, said a Toss Bank official.
Toss Bank’s capital will increase to 1.45 trillion won after the stock sale, an epic rise from humble start at 250 billion won.
[ⓒ Pulse by Maeil Business Newspaper & mk.co.kr, All rights reserved]