Daishin Securities Issues 364th DLS at 9.99 Billion KRW Linked to 3-Month Treasury Rate Non-Listed 1-Year Bond with Limited Shareholder Impact
Daishin Securities is issuing the 364th non-equity linked derivative bond DLS worth 9.99 billion KRW maturing on April 20 2027.
The underlying asset is the Korean Treasury 3-month rate offering annual returns of 3.31% if the rate exceeds 6% at maturity otherwise 3.30%.
The bond is not listed on any exchange and is not protected by the Depositor Protection Act meaning potential loss of principal.
Issuer Daishin Securities holds a AA- credit rating from three agencies but the bond is unsecured and depends on the issuer's solvency.
Proceeds will be used for hedging and investments in financial products.
No shareholder return measures involved this debt issuance does not dilute equity.
[AI Summary]Daishin Securities' DLS issuance adds 9.99 billion KRW in debt with no equity dilution having limited impact on shareholder value. The unlisted nature poses liquidity risk and while the AA- credit rating suggests low default risk the unsecured status limits investor protection.