Hanwha Investment & Securities Issues 59.7 Billion KRW in Principal-Protected Equity-Linked Bonds, Featuring Equity-Linked Returns and AA- Credit Rating
Hanwha Investment & Securities issues three series of equity-linked bonds ELBs linked to Samsung Electronics common stock and KOSPI200 index totaling 59.7 billion KRW. These notes are principal-protected, offering return of principal at maturity or upon early redemption if barrier conditions are met. Issue price is 9,950 KRW per 10,000 KRW face value.
Proceeds will be used for hedging the underlying assets and investing in financial products to ensure stable repayment. The issuer credit rating is AA- from NICE, and the bonds are unsecured and unsubordinated, not covered by depositor protection.
Investors face risks including underlying asset price fluctuations, issuer credit risk, potential principal loss upon early redemption, and limited liquidity due to non-listing. However, the principal protection feature provides a safety net if the underlying remains above the barrier.
[AI Summary]Hanwha Investment & Securities' 59.7 billion KRW ELB issuance is a debt financing with no equity dilution, thus neutral for shareholders. The funds are used for hedging, limiting growth impact. Despite the issuer's strong AA- credit rating, investors should be cautious about liquidity risk from non-listing and potential losses from early redemption linked to underlying asset performance.