Kyobo Securities Issues Two KOSPI200-Linked ELNs Worth 6.6B KRW - Routine Fundraising Within Normal Business Scope
Kyobo Securities completed the issuance of two equity-linked notes (ELN), series 12504 and 12505, on June 1, 2026.
Both series are linked to the KOSPI200 index. The planned offering amount was 19.9B KRW each, but actual proceeds were 578M KRW (subscription rate 2.91%) for series 12504 and 6.0B KRW (30.17%) for series 12505, totaling 6.58B KRW.
Each note has a face value of 10,000 KRW and an issue price of 9,950 KRW (discount). They are issued as unlisted electronic securities.
Series 12504 has a 3-year maturity (June 5, 2029), with automatic early redemption conditions at ≥75% of initial strike, and final redemption up to 115.60%.
Series 12505 also has a 3-year maturity, early redemption at ≥80% of initial strike, plus monthly coupon payments at 0.4925% of face value if the underlying closes above 70% of the initial strike.
The proceeds will be used for hedging transactions (futures, options, and equity trading) to ensure stable repayment.
[AI Summary]This ELN issuance is a routine funding activity within Kyobo Securities' normal business scope and does not directly dilute nor enhance shareholder value. The low subscription rate suggests limited market demand, likely due to the structured product nature rather than issuer credit concerns.