KIWOOM Securities Issues 100B KRW Principal-Guaranteed ELB Linked to Samsung Electronics… Funding Purpose, Limited Impact on Shareholder Value
KIWOOM Securities will publicly issue the 678th KIWOOM Dream Public Offering Derivative-Linked Bond (principal-guaranteed, Grade 5) linked to Samsung Electronics common stock on June 19, 2026, with a total amount of 100 billion KRW (10,000 KRW × 10,000,000 securities).
The maturity is June 18, 2027 (364 days), and the bond is principal-guaranteed, paying a pre-tax annual return of 3.75% (or 3.751% if the underlying asset exceeds 300% of the initial price), ensuring no loss of principal for investors.
Proceeds will be used for hedging the underlying asset and investing in financial products. The bond is unsecured and unguaranteed, with the issuer's credit rating at AA (from Korea Ratings, NICE Investors Service, and Korean Credit Rating).
The securities are not listed on the Korea Exchange; early redemption incurs a 1% annual penalty, which is waived for special termination of retirement pension accounts.
The issuance may be cancelled if total subscription is less than 500 million KRW, and subscriptions are limited to retirement pension trustee accounts.
[AI Summary]This issuance of principal-guaranteed ELB by KIWOOM Securities is a routine funding activity that does not dilute existing shareholders or alter the capital structure. Its direct impact on short-term stock price is limited, and as the proceeds are solely for hedging and investment, the event is evaluated as neutral.