Hanwha Investment & Securities will issue five equity-linked bonds totaling KRW 49.7 billion through subscription on June 15, 2026. One tranche is linked to SK Hynix common stock, and the remaining four are linked to the KOSPI200 index.
These securities are unlisted, not covered by the Deposit Protection Act, and have a principal-guaranteed structure paying at least the principal at maturity or upon early redemption. Yields range from 3.40% to 8.30% per annum.
The issuer's credit rating is AA-, indicating stability, but the bonds are unsecured and unguaranteed, exposing investors to the issuer's credit risk. Since the bonds trade over the counter, liquidity is limited, and early redemption may result in principal loss.
The proceeds will be used entirely for hedging underlying assets and investing in financial products, representing a defensive capital allocation rather than productive expansion or growth.
As of March 31, 2026, Hanwha Investment's total credit conversion amount was approximately KRW 989.2 billion, with ELB and DLB outstanding balances of about KRW 104.2 billion and KRW 79.4 billion, respectively.
[AI Summary]This issuance increases the issuer's leverage but does not dilute shareholders, and the defensive use of proceeds for hedging implies a neutral impact on shareholder value. The issuer's strong credit rating mitigates default risk, but investors should be aware of liquidity constraints and early redemption terms.