ITCEN CTS said on Monday it will issue 5 billion won of convertible bonds (CB) to its largest shareholder, ITCEN Global, and use the entire proceeds to repay borrowings as it moves to improve its financial structure.

The company said ITCEN Global, its parent and largest shareholder, will subscribe to the full amount. The payment date is Sept. 16.

The 5 billion won to be raised will be used entirely to repay part of a general funds loan from a financial institution, not for new business investment or working capital. ITCEN CTS said it plans to reduce financial debt and improve financial stability.

The company emphasized that, instead of raising funds by relying on outside investors, its largest shareholder will inject funds directly to repay borrowings in a stable manner and participate in improving the financial structure.

An ITCEN CTS official said the CB issuance is "for the purpose of repaying the company's borrowings and improving its financial structure" and that since the entire proceeds will be used to repay debt, it is not for outflows of new funds or any specific investment purpose. The official said the company focused on reducing financial debt and laying a financial foundation for stable business operations in the future.