South Korean AI Infrastructure Firm Xiilab Raises 10 Billion Won via Convertible Bonds from National Growth Fund to Expand Data Center Business
Xiilab secures 10 billion won through zero-interest, non-refixing convertible bonds subscribed by government policy funds and venture funds, aiming to build working capital for AI data center expansion amid growing demand for next-generation GPUs.
Xiilab, a South Korean AI infrastructure specialist, resolved on November 6, 2026, to issue 10 billion won in private placement convertible bonds (CBs). According to the company's disclosure, the subscribers include sub-funds of the "National Growth Fund" managed by Korea Investment Value Asset Management, DB Asset Management, SuSeong Asset Management, and Orion Asset Management (8 billion won), as well as Orion Asset Management's KOSDAQ Venture Fund and others (2 billion won). The National Growth Fund is a policy fund established by the South Korean government to cultivate advanced strategic industries such as AI, semiconductors, and biotechnology.
The financing terms are favorable to existing shareholders: both the coupon rate and the maturity guarantee yield are set at 0%, and there is no "refixing" clause that would adjust the conversion price downward if the stock price falls. Additionally, Xiilab has secured a call option to repurchase up to 50% of the subscribed amount, allowing it to mitigate potential dilution from new share issuance if the stock price rises. Investors may exercise their early redemption right (put option) after 30 months from issuance. The acquisition contract is scheduled for signing on November 10, with payment due on November 16.
Xiilab plans to use these funds to expand its AI Data Center (AIDC) business. The company noted that domestic investment in AI computing infrastructure in South Korea is simultaneously expanding across three fronts: government-led national AI computing centers, regional AI data centers, and corporate self-built GPU clusters. As an NVIDIA Elite Partner, Xiilab aims to secure working capital in advance to prepare for the anticipated surge in demand for latest-generation GPUs like NVIDIA's Vera Rubin platform.