KIWOOM Securities to Issue KRW 100B Principal-Guaranteed ELB (Series 676) at 3.75% p.a. - Routine Funding, Limited Impact on Shareholder Value
KIWOOM Securities will issue the 676th series public offering derivative-linked bond (equity-linked bond) worth KRW 100 billion with subscription on June 5, 2026. Only retirement pension funds may subscribe; the product is a principal-guaranteed (Grade 5, low risk) bond maturing on June 4, 2027.
The return structure pays 3.751% p.a. (pre-tax) if Samsung Electronics common stock price at maturity is at least 300% of the initial reference price, and 3.750% p.a. if below. Historical simulation indicates a 98.6% probability of receiving the 3.75% return.
Proceeds of KRW 100 billion (net proceeds approx. KRW 99.995 billion) will be used for hedging underlying assets and investing in financial products; issuance costs are KRW 5 million. The issuer's credit rating is AA (by KIS, NICE, KR), and the bond is not protected by the Depositor Protection Act.
The bond is unlisted. Investors may request early redemption but incur a 1.00% p.a. penalty, potentially leading to principal loss. Full loss of principal is possible upon issuer bankruptcy. Other risks include liquidity risk and dividend income taxation.
This disclosure represents a routine issuance of derivative-linked bonds, which does not directly affect KIWOOM Securities' capital structure or shareholder value. There is no equity dilution or dividend change; it is part of normal business operations.
[AI Summary]The issuance of the 676th ELB by KIWOOM Securities is a normal business activity involving a principal-guaranteed structured product for retirement pension investors, offering a fixed annual return of 3.75% and raising KRW 100 billion. For existing shareholders, there is no dilution or dividend impact, and the issuer's AA credit rating and principal guarantee make default risk low. However, liquidity risk due to unlisted status and early redemption penalty, along with the absence of deposit insurance, are key considerations for investors.