KIWOOM Securities Issues KRW 19.9B Principal-Guaranteed Equity-Linked Bonds (ELB) for Hedging and Liquidity Purposes
KIWOOM Securities announced on May 29, 2026, the issuance of Series 1209 and 1210 principal-guaranteed equity-linked bonds (ELB) totaling KRW 19,900,000,000 (KRW 9,950,000,000 each).
Each bond has a face value of KRW 10,000 and an issue price of KRW 9,950 (99.5% of face value), with a maturity date of June 12, 2029 (approximately 3 years).
The underlying asset is the KOSPI200 Index, rated as risk level 5 (low risk), principal-protected. Early redemption occurs if the index is at least 75% (Series 1209) or 80% (Series 1210) of the initial strike; annual yields are 5.35% and 6.00%, respectively.
Proceeds will be used for hedging activities, including trading the underlying asset and listed/OTC derivatives, to ensure stable payment obligations.
These bonds are not listed on any exchange, resulting in low liquidity; early redemption may incur principal loss. They are not protected by the Depositor Protection Act.
The issuer's credit rating is AA (March 2026, by Korea Ratings, NICE, and KIS), indicating strong creditworthiness, but repayment depends on the issuer's financial condition.
[AI Comprehensive Analysis]This ELB issuance is a routine funding activity for KIWOOM Securities, with a neutral impact on existing shareholders. Investors should consider liquidity risks and early redemption possibilities due to underlying asset volatility.