NH Investment & Securities Issues 5B KRW ELB Linked to Samsung Electronics and SK Hynix, Limited Shareholder Impact
NH Investment & Securities is publicly offering 5 billion KRW (50,000 securities at 100,000 KRW each) of Equity Linked Bonds (ELB) series 2815, linked to Samsung Electronics common stock and SK Hynix common stock.
Subscription period is from June 2 to June 11, 2026; payment and allocation date is June 12, 2026; maturity is June 12, 2029. The bonds are unlisted and traded over-the-counter only.
Monthly coupon: if both underlying stocks close at or above 75% of initial price on each monthly evaluation date, investors receive 0.8225% of face value (pre-tax, max 9.870% p.a.).
Automatic early redemption: every 6 months, if both stocks are at or above 80% of initial price, the bond is redeemed at 100% of face value, up to 5 times.
At maturity: if both stocks are at or above 80% of initial price, investors receive 100% principal plus up to 29.610% cumulative return (9.870% p.a.); if any is below 80%, only principal is returned (principal protection).
Proceeds will be used for hedging (futures/options trading in underlying assets) and purchase of high-quality bonds.
Issuer (NH Investment & Securities) credit rating is AA+ (Korea Corporate Rating, March 25, 2026). This product is not covered by the Depositor Protection Act.
Early redemption by investor is possible at 95% of fair value (90% for first 6 months), but may incur principal loss; low liquidity as unlisted.
[AI Summary]This ELB issuance is a small-scale routine fund-raising activity for NH Investment & Securities. The principal-protected structure limits risk to the issuer's creditworthiness, with no dilution or capital impact on existing shareholders, making the shareholder impact neutral.