Hanwha Investment Securities Issues 19.99 Billion Won DLB Linked to USD/KRW, Investors Should Note Liquidity and Early Redemption Terms
Hanwha Investment Securities issues a derivative-linked bond DLB worth 19.99 billion won linked to the USD/KRW exchange rate. The maturity is 94 days, offering an annual return of 2.95% or 2.96% depending on the underlying asset price.
The bond is not listed on an exchange, resulting in low liquidity. If investors request early redemption, the repurchase price is at least 95% of fair value or 90% within six months, potentially causing principal loss.
The issuer has a credit rating of AA- but the bond is unsecured and unguaranteed, not protected by the Depositor Protection Act. Proceeds will be used for hedging activities, with no dilution of shareholder value.
[AI Summary]This DLB issuance represents routine funding for Hanwha Investment Securities with limited impact on stock price, but investors must carefully consider early redemption terms and illiquidity risks.