Daishin Securities Issues 20 Billion KRW in 386th DLS (Low Risk) – Annual Yield of 3.4% Linked to 3-Month Treasury Rate
Daishin Securities is issuing the 386th DLS (low risk) worth 20 billion KRW (2,000,000 units at 10,000 KRW each). Maturity is December 8, 2026 (187 days).
The underlying asset is the 3-month Korean Treasury bond rate. If the maturity evaluation price exceeds 7%, the annual return is 3.41%; otherwise, it is 3.40%. Historical simulation shows a near-zero probability of exceeding 7%, making it effectively a fixed-rate bond.
This security is not covered by the Deposit Protection Act and carries credit risk of the issuer (AA-). Early redemption may incur principal loss, and it is not listed on an exchange, limiting liquidity.
Proceeds will be used for hedging and financial investments. No shareholder dilution or change in control.
[AI Summary]Daishin Securities' issuance of the 386th DLS is a routine debt financing of 20 billion KRW with neutral impact on shareholder value. While offering stable returns in a low-rate environment, risks include lack of deposit insurance and potential principal loss upon early redemption.