Kyobo Securities Issues KRW 50 Billion Equity-Linked Bond (Low Risk) Linked to KEPCO
Kyobo Securities issues KRW 50 billion (5,000,000 units at KRW 10,000 each) of its 50230th series equity-linked bond (low risk, grade 5). Underlying asset: common stock of KEPCO.
At maturity (May 14, 2027), if the closing price of the underlying is at least 500% of the initial price, the bond pays 3.41% p.a.; otherwise 3.40% p.a. (pre-tax). This structure is near-principal-protected with a fixed low return.
Credit rating of Kyobo Securities is AA- (from Korea Investors Service and Korea Ratings, June 2025). The bond is unsecured and unguaranteed, relying on the issuer's credit.
The bond is not listed on the Korea Exchange, hence limited liquidity. Early redemption may result in principal loss (normal early redemption rate 0.90% p.a., special early redemption for retirement pensions 3.40% p.a.).
Not covered by the Depositor Protection Act; full loss possible upon issuer default.
Proceeds will be used for hedging the underlying asset.