Kyobo Securities Issues KRW 19.9 Billion in Equity-Linked Securities for Hedging and Investment
Kyobo Securities will issue two series of Equity-Linked Securities (ELB) (Nos. 12517 and 12518) on June 11, 2026, totaling KRW 19.9 billion (KRW 9.95 billion each), linked to Samsung Electronics and SK Hynix common stocks.
These securities are principal-guaranteed (ordinary risk, grade 4) with a 3-year maturity (June 14, 2029). Monthly coupons of 8.70% p.a. (Samsung, trigger 80% of initial) and 7.86% p.a. (SK Hynix, trigger 70%) are paid conditionally. Automatic early redemption is possible quarterly from 6 months onward if the underlying closes at or above 90% of the initial price.
The issue price is KRW 9,950 per KRW 10,000 face value (discount). Subscription is limited to iM Bank trust customers. The securities are unlisted, with low liquidity and no deposit insurance protection, posing potential principal loss risk.
Kyobo Securities (credit rating AA- from KIS and KOREA RATINGS) plans to use the proceeds for hedging and investment in underlying assets and derivatives, as part of normal business operations.
[AI Comprehensive Analysis]This disclosure represents a routine issuance of derivative-linked securities by Kyobo Securities, with no direct impact on existing shareholder value. The size is negligible relative to equity, and the use of funds is for hedging; thus, the effect on the stock price is neutral. Investors should be aware of the risks associated with unlisted, non-insured structures.