Kyobo Securities Issues KRW 19.9B in 4 Types of Equity-Linked Securities (ELS)… Routine Fundraising for Hedging, Neutral to Shareholder Value
Kyobo Securities will publicly issue 4 tranches of Equity-Linked Securities (ELS) (Nos. 12526-12529) totaling KRW 19.9 billion (KRW 4.975 billion each) with subscription on June 11, 2026.
Underlying assets: Samsung Electronics (12526, coupon 9.30% p.a.), SK Hynix (12527, coupon 10.50% p.a.), Hyundai Motor (12528, coupon 7.50% p.a.), and Samsung Electronics + SK Hynix (12529, coupon 11.01% p.a.). All have 3-year maturity, monthly coupon conditions (if each underlying closes at or above 80% or 75% of strike), and principal-guaranteed structure (pay 100% of face value at maturity or upon autocall).
These securities are not protected by the Depositor Protection Act; repayment depends on Kyobo Securities' credit rating (AA-). Principal loss may occur if the issuer's financial condition deteriorates.
As unlisted securities, early redemption before maturity will be at 95% (or 90% within 6 months) of fair value, potentially causing principal loss. Issuance may be canceled if total subscriptions are less than KRW 300 million.
Proceeds will be used for hedging (through underlying assets and derivatives) and investment in financial products, with no direct impact on Kyobo Securities' existing shareholder value.
[AI Comprehensive Analysis]This disclosure is a routine ELS issuance by Kyobo Securities, part of normal business operations without material changes to the company's financial structure or shareholder value. While the issuance size (KRW 19.9B) is not insignificant relative to equity, risk is managed through hedging. Investors should be fully aware of the non-principal-protected nature and credit risk before investing.