Kiwoom Securities Issues KRW 100 Billion Principal-Guaranteed Equity-Linked Bonds with No Shareholder Dilution
Kiwoom Securities issues KRW 100 billion of principal-guaranteed equity-linked bonds ELB series 1230 linked to Hyundai Motor common stock.
This issuance is in the form of bonds without equity conversion causing no dilution to existing shareholders and the proceeds will be used for hedging and financial investment operations.
The issuer Kiwoom Securities has a stable AA credit rating but the product is not covered by the depositor protection act and early redemption may result in principal loss.
[AI Summary]Kiwoom Securities' issuance of ELB series 1230 is a capital raising that does not impact existing shareholder value with no dilution concern. The use of proceeds for hedging and operations is clear making capital allocation neutral. The counterparty risk is low given the AA credit rating but liquidity and early redemption risks are borne by investors.