Kyobo Securities Issues KRW 19.9 Billion Principal-Protected ELBs Linked to Samsung and SK Hynix… Neutral for Shareholder Value
Kyobo Securities is issuing two series of equity-linked derivative bonds ELBs totaling KRW 19.9 billion, each series linked to Samsung Electronics common stock and SK Hynix common stock respectively.
The bonds are principal-protected at maturity and pay monthly coupons if the underlying asset price remains above 80% of the initial price. The Samsung-linked series offers a coupon rate of 7.08% per annum, while the SK Hynix-linked series offers 8.13% per annum.
Early redemption is triggered if the underlying price is above 90% of the initial price on semi-annual evaluation dates. The maturity date is May 10, 2029.
The proceeds will be used for hedging and investment in financial products, which is part of Kyobo Securities' routine business operations.
Kyobo Securities holds a credit rating of AA- from Korea Investors Service and Korea Credit Rating as of June 2025, indicating strong financial soundness.
[AI Summary]This ELB issuance by Kyobo Securities is a routine funding activity within its normal business scope, with a neutral impact on shareholder value. The principal-protected structure and AA- credit rating provide investor safeguards, but the issuance is unrelated to capital expansion or shareholder return policies.