Hanwha Investment & Securities Issues 5 Billion Won ELB Linked to Samsung Electronics with Principal Protection
Hanwha Investment & Securities is publicly issuing 5 billion won of Hanwha Smart ELB No. 1057, a derivative-linked bond linked to Samsung Electronics common stock.
The bond features monthly coupon payments and an auto-call structure, with principal protection at maturity providing 100% of face value.
Monthly coupon of 0.51% or 6.12% per annum is paid if the underlying asset price is at least 75% of the initial strike, and auto-call occurs at 85% or above.
This issuance utilizes the remaining balance of the shelf registration, and proceeds will be used for hedging and investment in financial products.
The bond is not protected by deposit insurance, and investors face credit risk and potential principal loss upon early redemption.
[AI Summary]This offering is a routine derivative-linked bond issuance by Hanwha Investment & Securities. The amount is negligible relative to market cap and has no direct impact on shareholder value. Although the structure is principal-protected, credit risk and liquidity constraints remain.