Kyobo Securities Issues 4 Series of Equity-Linked Derivative Bonds Worth KRW 19.9B in Total... Fundraising for Hedging Purposes, Limited Impact on Shareholder Value
Kyobo Securities has publicly issued 4 series of Equity-Linked Derivative Bonds (ELB) (Issues 12526~12529) totaling KRW 19.9B (KRW 4.975B per series).
Underlying assets: Samsung Electronics (12526), SK Hynix (12527), Hyundai Motor (12528), and dual-asset basket of Samsung Electronics and SK Hynix (12529); all are principal-guaranteed (normal risk) structure.
Monthly coupon rates range from 7.50% to 11.01% p.a. depending on the underlying, with early redemption conditions (85~90% of initial price) and principal protection at maturity.
Proceeds will be used for hedging (underlying asset and derivatives trading) and investment in financial products.
These bonds are unlisted, not protected by depositor insurance, and are unsecured, unguaranteed obligations relying on the issuer's credit rating (AA- from KIS and KBP, as of 2025).
Issuance may be cancelled if total subscription is below KRW 300M; early redemption may incur losses as redemption price is set at 95% (90% within 6 months) of fair value.
As of March 2026, Kyobo's outstanding ELB (principal-guaranteed) amounted to approximately KRW 278.3B, with derivative-related credit equivalent amount of KRW 0.673B.
[AI Comprehensive Analysis]This disclosure is a routine ELB issuance by Kyobo Securities for hedging fund raising. It does not involve equity dilution or capital structure change, thus neutral for existing shareholders. Investors should note the lack of deposit insurance and credit risk of the issuer.