Kyobo Securities Issues KRW 60B Principal-Protected ELB Linked to KEPCO... No Shareholder Impact but Credit and Liquidity Risks
Kyobo Securities issues two series of equity-linked debt securities (ELB) totaling 60 billion KRW, linked to KEPCO common stock.
Each series amounts to 30 billion KRW, issue price 10,000 KRW, maturities of 1 year (50239) and 2 years (50240).
At maturity, if the underlying asset closes at or above 500% of initial price, investors receive annual return of 3.81% (1yr) or 4.01% (2yr); otherwise, 3.80% or 4.00%, guaranteeing principal.
However, these securities are not protected by deposit insurance, are unsecured and unsubordinated, relying on Kyobo's AA- credit rating; default could lead to loss of principal.
Unlisted on exchange, liquidity is limited, and early redemption may result in principal loss.
Proceeds will be used for hedging and investment in financial products.
[AI Composite Analysis]This disclosure is a routine funding activity for Kyobo Securities with no direct impact on shareholder value. Although low-risk principal-protected, investors should be aware of credit and liquidity risks.