Hyundai Motor Securities' 1564th ELB Subscribed at 29.47% – Funds for Hedging
Hyundai Motor Securities issued its 1564th Equity-Linked Bond (ELB, low risk), but only 29.47% (2.947B KRW) of the planned 10B KRW was subscribed, indicating a low subscription rate.
The ELB is linked to the S&P 500 index, offering a coupon of 3.010% p.a. if the index rises ≥200% at maturity, or 3.000% p.a. otherwise (pre-tax), with principal protection. Maturity: August 31, 2026 (94 days).
Proceeds will be used for hedging purposes, i.e., trading derivatives and stocks related to the underlying asset to ensure stable repayment of the ELB – a standard operational activity.
The bonds are unlisted and issued via electronic registration, causing no dilution of existing shares or changes to equity capital.