NH Investment & Securities will issue Equity-Linked Bonds ELB Series 2817 and 2818 totaling KRW 30,074,870,000 through subscription on June 15, 2026.
Series 2817 is linked to Samsung Electronics common stock with a maximum annual return of 7.710%, while Series 2818 is linked to Hyundai Motor common stock with a maximum annual return of 7.800%.
These securities are unlisted and guarantee principal at maturity or upon automatic early redemption, but early redemption at the investor's request may result in principal loss; they are not protected by the Depositor Protection Act and carry the issuer's AA+ credit rating.
The proceeds will be used for hedging to ensure stable repayment, with no direct impact on the issuer's capital expansion or shareholder return policies.
NH Investment & Securities holds a strong AA+ credit rating from Korea Ratings, but these unsecured bonds expose investors to credit risk if the issuer's financial condition deteriorates.
[AI Summary]This ELB issuance is a debt financing with no dilution to existing shareholders. Funds are allocated to hedging, offering limited earnings enhancement, but the AA+ credit rating and principal protection feature provide investor safety. However, low liquidity due to unlisted status and potential principal loss upon early redemption warrant careful investment consideration.