South Korean advanced specialty chemical company ITChem has issued approximately $27.8 million(KRW 40 billion) in unregistered, unsecured private convertible bonds (CBs), with proceeds earmarked entirely for the construction of a next-generation pharmaceutical manufacturing facility.

The CB issuance drew a strong lineup of investors. Timefolio Asset Management, an existing ITChem shareholder, anchored the round with KRW 25 billion (approximately $17.4 million). Value-focused LIFE Asset Management contributed KRW 5 billion (approximately $3.5 million), while HY24 — a Paris-based manager of the world’s largest clean hydrogen infrastructure fund — came in as a strategic investor (SI) with KRW 10 billion (approximately $6.9 million). This marks HY24’s first-ever investment in South Korea.

The proceeds will be directed toward constructing a dedicated GMP-certified manufacturing facility — approved by Korea’s Ministry of Food and Drug Safety — designed to produce high-value active pharmaceutical ingredients (APIs). The plant will focus on oral small-molecule peptide therapeutics, a rapidly growing category that includes treatments for obesity and diabetes. ITChem expects the completion of the facility to meaningfully accelerate its revenue growth trajectory.

HY24’s decision to invest came after nearly three years of in-depth evaluation of ITChem’s technology and business model. A representative of HY24 described the investment as “a strategic starting point to formalize collaboration with ITChem on heavy water and related hydrogen infrastructure projects.”

The CB structure was designed with investor-friendly terms that reflect a shared conviction in ITChem’s long-term equity upside rather than near-term income. The bonds carry a zero coupon rate with a maturity yield of 1% per annum on a compound basis — highly favorable conditions by market standards. ITChem also secured a call option allowing it to repurchase up to 30% of the principal amount starting 12 months after issuance, providing added flexibility in managing its capital structure.

“This CB issuance is more than a financing exercise — it’s a strategic commitment to securing the core production assets that will drive our growth over the next decade,” said Ingyu Kim, CEO of ITChem. “By combining world-class GMP infrastructure with our proprietary synthesis capabilities, we aim to become a global leader in organic chemical materials.”