Kyobo Securities Issues 12455th Equity-Linked Bond with Principal Protection; Neutral Impact on Share Value
Kyobo Securities issues the 12455th Equity-Linked Bond linked to KOSPI200 index with a total offering of 19.9 billion KRW.
Each bond has an issue price of 9,950 KRW and face value of 10,000 KRW, guaranteeing 100% principal at maturity or upon automatic early redemption.
Monthly coupon payment condition: if the underlying asset closing price is at least 75% of the initial strike, a monthly coupon of 0.4075% annualized 4.89% is paid, up to 36 times.
This bond is unlisted and not protected by the Depositor Protection Act; repayment depends on Kyobo Securities' credit rating of AA-.
Early redemption upon investor request is possible at 95% or more of fair value 90% within first 6 months, but principal loss may occur.
[AI Summary]Kyobo Securities' 19.9 billion KRW principal-guaranteed ELB issuance is a routine funding activity with neutral impact on shareholder value. The AA- credit rating and principal protection feature provide reasonable investor protection, but lack of listing and liquidity constraints are key risks.