Hanwha Investment & Securities Issues KRW 29.85 Billion Principal-Protected ELB Linked to KOSPI200 – Routine Business Operation
Hanwha Investment & Securities publicly offers 'Hanwha Smart ELB No. 1096' worth KRW 29.85 billion. This is an equity-linked bond (ELB) based on the KOSPI200 index.
Issue price per bond: KRW 9,950 (face value KRW 10,000), maturity: June 12, 2029 (3 years). Subscription period is only June 8, 2026, limited to Hana Bank trust department.
Product structure: Monthly coupon of 0.45% (5.40% p.a.) is paid if KOSPI200 is at or above 65% of the initial level on each monthly observation date. Additionally, if on any semi-annual autocall date (5 total) the index is at or above 75%, the bond is redeemed at 100% principal. At maturity, if the index is at or above 75%, full principal is paid; even if below 75%, full principal is still paid (0% return), making it a principal-protected structure.
This issuance is an additional offering under Hanwha's shelf registration (total expected issuance KRW 4.5 trillion). Net proceeds after expenses of about KRW 14.93 million are approximately KRW 29.8485 billion, to be used primarily for hedging and investment operations.
The bond is not listed on an exchange, so liquidity is limited. Early redemption returns at least 95% (90% within 6 months) of fair value, potentially resulting in principal loss. Not covered by deposit insurance, and subject to issuer credit risk (AA-).
[AI Comprehensive Analysis]This disclosure represents a routine structured product issuance by a securities firm, with no direct impact on shareholder value or capital structure. It is considered a neutral event for the company's stock. Investors should fully understand the product's risks (liquidity, credit, market, etc.) before investing.