Kyobo Securities Issues 100 Billion Won Derivative-Linked Bond, No Share Dilution, Funds for Hedging and Investment
Kyobo Securities will issue its 1236th derivative-linked bond through subscription on June 12, 2026. The total issue amount is 10 billion won with a face value of 10,000 won per security, totaling 1 million securities.
This issue is a low-risk product linked to 3-month treasury bond rates, structured to repay at least the principal at maturity, but early redemption may result in losses.
The proceeds will be used for hedging transactions and investment in financial products to ensure stable repayment under the bond terms. Since no equity is issued, there is no dilution for existing shareholders.
Kyobo Securities has a credit rating of AA- from Korea Investors Service and Korea Ratings as of June 2025, indicating strong repayment capacity. However, this bond is not protected by the depositor protection act, and full loss of principal is possible if the issuer defaults.
[AI Summary]Kyobo Securities' issuance of 10 billion won in derivative-linked bonds is a non-dilutive financing method, having limited negative impact on existing shareholders. The funds are used for hedging and investment as part of normal operations, and the issuer's AA- rating is strong, but investors must consider early redemption risk and credit risk.