[Edaily Marketin KIM YEON-SEO Reporter] Daishin F&I, a non-performing loan (NPL) investment management company with an ‘A+’ credit rating, plans to issue corporate bonds worth up to 300 billion won this September.

As the company has strengthened its revenue base by expanding its investment scale in line with the growing NPL market, the funds raised are expected to be used to repay commercial paper (CP) and corporate bonds maturing within the year. However, the possibility of additional losses from the overseas real estate business of its subsidiary, Daishin Property, is cited as a key variable that could determine the company’s future profitability.

According to investment banking (IB) industry sources on the 25th, Daishin F&I plans to issue 150 billion won in corporate bonds on the 15th of next month. The issuance will consist of 2-year and 3-year tranches. The company has left open the option to increase the issuance amount to a maximum of 300 billion won, depending on the results of the bookbuilding process. The bookbuilding for institutional investors is scheduled for September 7.

NH Investment & Securities, KB Securities, Korea Investment & Securities, Shinhan Investment & Securities, and Samsung Securities are serving as lead underwriters. The target yield band for both the 2-year and 3-year tranches has been set at -30 basis points (bps; 1 bp = 0.01 percentage point) to +30 bps relative to the ratings from independent private bond rating agencies.

680 billion won in CP and corporate bond maturities due by year-end

Daishin F&I is expected to use the funds raised from this corporate bond issuance to repay debt. According to BondWeb, Daishin F&I faces a total of 580 billion won in commercial paper (CP) maturities from September 15—the bond issuance date—through the end of this year.

Corporate bond maturities are also coming due in quick succession. The 80 billion won “Daishin F&I 41-1” is scheduled to mature on October 16, and the 20 billion won “Daishin F&I 37” is set to mature on December 28. The total value of commercial paper and corporate bonds maturing by year-end amounts to 680 billion won.

Korea Ratings, Korea Credit Rating, and NICE Credit Rating have assigned Daishin F&I a credit rating of ‘A+’ with a ‘Stable’ outlook.

Daishin F&I has actively increased its purchase volume in response to the expansion of the NPL market since 2023. The outstanding balance of NPL securitization bonds rose from 1 trillion won at the end of 2023 to 2.4 trillion won at the end of 2025. Its market share, based on the volume of NPL purchases from the banking sector, also rose from 12.1% to 20.9% during the same period. The company is credited with solidifying its position as the industry’s second-largest player and strengthening its earnings base.

The company’s core earnings power improved due to increased interest income from the expansion of NPL-backed securitized bonds and improved gains and losses on loan recoveries. However, earnings volatility stemming from the non-NPL segment was still assessed to be high.

Daishin F&I recognized a one-time impairment charge of 41.9 billion won in the fourth quarter of 2025 due to the discontinuation of overseas real estate operations by its consolidated subsidiary, Daishin Property. Consequently, last year’s consolidated net income fell significantly to 41.9 billion won from 139.8 billion won the previous year, and the return on assets (ROA) also declined to 1.0%.

"Leverage Expected to Reach 4x… Additional Subsidiary Losses Remain a Variable"

The company’s financial soundness is assessed as remaining

at

an excellent

level

. Kim Hye-won, a senior analyst at Korea Corporate Rating, stated, “Despite a decline in profitability due to one-time expenses incurred by subsidiaries, the company is maintaining excellent financial soundness.” She added, “As the investment asset portfolio has been restructured to focus on NPL securitization bonds, asset quality remains excellent, and the leverage ratio is expected to remain at a healthy level of 4.2x by the end of 2025.”

Daishin F&I’s leverage ratio rose from 2.9x in 2022 to 3.7x in 2023 and 4.2x in 2024, and remained at 4.2x in 2025. For NPL investment firms, financial soundness is generally considered excellent when the leverage ratio is stably maintained below 5x or around 5x.

Researcher Kim noted, “There is a possibility that the leverage ratio could rise further as the company expands its investment portfolio,” but added, “Considering the company’s financial policies and investment plans, it is expected to be managed stably at around 4 times.”

Whether the subsidiary, Daishin Property, will recognize additional losses is a key factor to monitor. Analyst Kim stated, “In the fourth quarter of 2025, one-time losses occurred at Daishin Property’s non-NPL business sites, causing a significant decrease in consolidated net income and a decline in ROA,” adding, “We plan to proactively review whether the subsidiary will recognize additional losses in the future and closely monitor profitability trends.”