Hanwha Investment Issues 10 Billion Won Principal-Guaranteed ELB Linked to KOSPI200, No Shareholder Dilution
Hanwha Investment & Securities issues 10 billion won of Hanwha Smart ELB Series 1111, a principal-guaranteed derivative-linked bond linked to KOSPI200 index.
The product offers a monthly coupon of 0.61% if the index is at least 65% of the initial level, and autocall at 80% barrier. At maturity, full principal is returned even if the index falls below 80%.
The issuer has a credit rating of AA- from NICE, and the raised funds will be used for hedging and investment purposes.
This issuance does not involve any equity dilution, limiting negative impact on existing shareholders.
[AI Summary]The issuance of 10 billion won in derivative-linked bonds without new equity results in no capital dilution. Funds are allocated for hedging and investment, not for growth-oriented projects. The AA- rated issuer ensures low default risk, but early redemption may cause principal loss due to market volatility.