Hanwha Investment issues 39.8 billion won principal-protected Smart ELB No. 1056 linked to Samsung Electronics, neutral stock impact
Hanwha Investment & Securities is publicly offering 39.8 billion won of Hanwha Smart ELB No. 1056 derivative-linked bonds. The underlying asset is Samsung Electronics common stock, with an issue price of 9,950 won and face value of 10,000 won.
This product is a monthly coupon paying principal-protected ELB. It pays a monthly coupon of 0.49% if the underlying closes at or above 70% of the initial strike price. Auto-call barrier is 85%, and at maturity even if below 85%, 100% of principal is repaid.
The bonds are unlisted and not covered by depositor protection, so principal loss is possible. Early redemption may incur losses. Issuer credit rating is AA-.
[AI Summary]This is a routine issuance of derivative-linked bonds for funding and hedging purposes. It does not dilute equity or change enterprise value. The impact on share price is neutral. Investors should understand the principal protection structure and credit risk.