Mirae Asset Securities Issues KRW 5B ELB (3989th Series) – Principal-Protected Linked to Samsung Elec & SK Hynix, AA Credit Rating, Limited Shareholder Impact
Mirae Asset Securities is issuing the 3989th Equity-Linked Bond (ELB) worth KRW 5 billion. Face value KRW 10,000 per bond, total 500,000 bonds, maturity June 19, 2029 (3 years).
Underlying assets: Samsung Electronics common stock and SK Hynix common stock. Monthly coupon of 0.72% (8.64% p.a.) if both stocks are above 55% of initial price; otherwise no coupon that month.
Automatic early redemption: Semi-annual observation dates; if both stocks are above 75% of initial price, the bond is redeemed at par. 11 early redemption opportunities.
At maturity, if both stocks are above 75%, par is paid; if either is below 75%, par is still paid (principal-protected). However, there is credit risk from the issuer (AA rated).
Issuer credit rating: AA (from Korea Ratings, NICE, KIS). Proceeds will be used for hedging underlying assets and investing in financial products.
The bond is unlisted; early redemption at investor request may result in principal loss (at least 95% of fair value, 90% within first 6 months). Issuance may be cancelled if total subscription is less than KRW 500 million.
[AI Summary]This ELB issuance is a routine debt fundraising activity with negligible direct impact on existing shareholder value. The issue size (KRW 5B) is minimal compared to market cap (~KRW 34T), and the principal-protected structure with high credit rating (AA) offers relative safety for investors, but does not materially alter the company's financial position.