Daishin Securities Issues 1105th Equity-Linked Bond Worth 19.97 Billion Won for Hedging and Investment
Daishin Securities publicly offers the 1105th equity-linked bond linked to the S&P 500 index with a total offering amount of 19.97 billion won.
Each bond has a face value of 10,000 won and an issue price of 9,985 won. 2 million units are issued with a maturity of 183 days on December 22, 2026.
The maturity yield is structured with low risk: if the underlying asset exceeds 500% of the initial reference price, 3.11% per annum, otherwise 3.10% per annum.
The raised funds will be used for hedging transactions in underlying assets and derivatives to ensure stable redemption payments.
The bonds are unlisted; early redemption is possible at 95% or more of fair value but may incur principal loss.
Daishin Securities has a credit rating of AA- stable, but investors face credit risk if the issuer defaults.
For tax purposes, excess returns over the issue price are treated as dividend income and subject to withholding tax, regardless of purchase price.
[AI Summary]This debt issuance by Daishin Securities does not dilute shareholder equity but its use for hedging limits direct earnings enhancement. The AA- rated issuer provides credit comfort, though lack of listing poses liquidity risk. Suitable for fixed-income investors seeking modest returns in a low-rate environment.