NH Investment & Securities Issues KRW 5 Billion ELB Linked to Samsung Electronics and SK Hynix — Capital Raising for Hedging, No Impact on Shareholder Value
NH Investment & Securities is publicly offering the 2,815th Equity-Linked Bond (ELB) worth KRW 5 billion (5,000,000,000) from June 2 to June 11, 2026. The proceeds will be used for hedging transactions to ensure stable repayment under the bond terms.
The underlying assets are Samsung Electronics common stock and SK Hynix common stock. The knock-in barrier is set at 80%, providing full principal plus up to 9.87% annual return if both assets remain above 80% of the initial strike at maturity. If either falls below 80%, only principal is returned.
Each bond has a face value of KRW 100,000, with a total of 50,000 bonds issued. The bonds are unlisted. Investors may request early redemption at 95% (90% within the first 6 months) of fair value, but principal loss is possible.
The issuer's credit rating is AA+ (Korea Ratings, March 25, 2026). However, this product is not covered by the depositor protection act, and repayment depends on the issuer's solvency, posing potential principal risk.
[AI Summary]This KRW 5 billion ELB issuance is a routine structured bond offering, with all proceeds used for hedging, thus no impact on existing shareholders' equity or leverage. Investors should be aware of the unlisted nature and underlying asset risks, especially potential principal loss upon early redemption.