Kiwoom Securities Issues 9.95 Billion KRW 1227th Series Derivative-Linked Bond, Samsung Electronics Linked Principal-Guaranteed ELB for Funding and Hedging
Kiwoom Securities is publicly offering the 1227th series derivative-linked bond ELB linked to Samsung Electronics common stock with a total amount of 9.95 billion KRW. This security is a principal-guaranteed grade 5 low-risk product that pays at least the principal at maturity or upon automatic early redemption.
The issue price is 9,950 KRW per security and 1,000,000 securities will be issued. The issuance may be cancelled if total subscription amounts fall below 1 billion KRW. The bond is unlisted, limiting liquidity. Kiwoom Securities holds an AA credit rating from Korea Ratings, NICE Investors Service, and Korea Credit Rating.
The raised funds will be used for hedging transactions including trading in the underlying asset and derivatives and for investment in financial products to ensure stable repayment. This bond is not protected by the Depositor Protection Act and carries potential loss of principal.
[AI Summary]Kiwoom Securities' ELB issuance is a debt financing without equity dilution, having no impact on existing shareholder value. The funds are used for hedging and investment, making capital allocation neutral. The issuer's AA credit rating indicates low credit risk. The product is principal-guaranteed, targeting conservative investors with equity-linked returns.