Kyobo Securities Issues 9.93 Billion KRW in ELS, Neutral Impact on Stock Price
Kyobo Securities is issuing two equity-linked securities ELS series 13567 and 13568 totaling 9.93 billion KRW. These are partial principal-protected ELS linked to Samsung Electronics and SK Hynix with maximum loss capped at 10%.
The proceeds will be used for hedging and financial investment, a standard use for such issuances.
This offering does not involve equity dilution or capital increase so the impact on existing shareholder value is limited. However as unsecured securities ranking equally with other unsecured debt investors are exposed to the issuer's credit risk currently rated AA-.
Kyobo Securities holds credit ratings of AA- from Korea Ratings and NICE Investors Service.
[AI Summary]Kyobo Securities' 9.93 billion KRW ELS offering is a routine financial product sale neutral to shareholder value with no dilution or capital structure change. However investors should note the credit risk of the issuer and the underlying asset price risk.
KOSPI Filing Information
Additional Documents for Shelf Registration (Derivative-Linked Securities - Equity-Linked Securities)