Kiwoom Securities Issues 4 Series of Equity-Linked Derivative Bonds (ELB)… Proceeds Despite Under-Subscription for Some Series, Funds to Be Used for Hedging
On June 1, 2026, Kiwoom Securities issued its 1185th to 1188th series of Equity-Linked Derivative Bonds (ELB), with a total intended amount of 398 billion KRW but only 3.83 billion KRW (3,825,775,000 KRW) actually raised, representing a subscription rate of 9.6%.
By series: Series 1185 (underlying: Hyundai Motor) raised 930 million KRW (9.35%), Series 1186 was cancelled due to insufficient subscriptions, Series 1187 (underlying: Hyundai Motor, monthly coupon 5.55% p.a.) raised 2.22 billion KRW (22.30%), and Series 1188 (underlying: POSCO Holdings, monthly coupon 5.85% p.a.) raised 677 million KRW (6.80%).
All series are principal-protected, with early redemption and maturity conditions ensuring at least par value. Proceeds will be used for hedging transactions related to these products.
The issuance is electronic (no physical certificates) and does not involve equity dilution, thus having limited impact on existing shareholder value. The low subscription rates for some series indicate weak demand, but the effect on Kiwoom's financial health is negligible given its market cap of 9.7 trillion KRW.
[AI Summary]Kiwoom's ELB issuance is a modest debt financing with no conversion rights, so it does not dilute equity or alter the capital structure, making it a neutral event for shareholders. The low subscription rates reflect tepid investor demand, but the small scale relative to its 9.7 trillion KRW market cap suggests no material impact on the stock price.