Kyobo Securities Issues 29.83B KRW in 3 Tranches of Equity-Linked Securities - Proceeds for Hedging and Trading, No Impact on Existing Shareholders
Kyobo Securities is issuing 3 tranches of equity-linked securities (ELB) with underlying assets of KOSPI200, Samsung Electronics, and SK Hynix, totaling 29.83B KRW (12530: 9.93B, 12531: 9.95B, 12532: 9.95B).
Tranche 12530 (low risk, grade 5, maturity 2029) offers a 7.20% annual coupon (0.60% monthly) and is principal-protected: 100% principal repaid at maturity/early redemption if the underlying is at least 90% of initial price, and also 100% if below 90%.
Tranches 12531 (Samsung, medium risk, grade 4, maturity 2027) and 12532 (SK Hynix, medium risk, grade 4, maturity 2027) offer 5.82% and 6.81% annual coupons respectively, and are non-principal-protected: 100% principal only if underlying at or above 100% of initial price; otherwise principal loss may occur.
Proceeds will be used for hedging activities (trading underlying assets, derivatives) and investments in financial products to ensure stable payment under the issuance terms.
These securities are not covered by deposit insurance, are not listed on an exchange (limited liquidity), and are unsecured. The issuer's credit rating is AA- (Korea Ratings, NICE Ratings, June 2025); in case of insolvency, investors may lose principal.
Issuance may be canceled if total subscription is below 0.3B KRW. Early redemption price is at least 95% of fair value (90% within first 6 months) but may involve principal loss.
[AI Summary]This disclosure represents a routine issuance of structured products by Kyobo Securities for operational hedging, with no dilution or capital impact on existing shareholders. The total amount of 29.83B KRW does not materially affect the company's capital structure; however, investors should note the inherent risks (credit, liquidity, principal loss) of such products. Overall, it is a neutral event.