Korea’s messaging app operator Kakao Corp. said Tuesday it will offer convertible bonds worth 230 billion won ($200 million) on the Singapore Exchange to raise operating capital.

In a public filing in Seoul, Kakao said the convertible bonds will come with a zero percent coupon rate maturing on May 11, 2021. The conversion price is set at 104,933 won per common share of Loen Entertainment, a subsidiary of Kakao that operates the nation’s top online music streaming service. The price is 27.5 percent higher than the Monday closing price of 82,300 won.


The conversion can be requested from June 21, 2016, to April 30, 2021, the company said.

Citigroup Global Markets and Morgan Stanley & Co. International will manage the bond sales, according to the company.

By Kim Yoon-mi (yoonmi@heraldcorp.com)