NH Investment & Securities Issues 750 Billion KRW of ELS... No Equity Dilution, High Risk Structured Product with Potential Principal Loss
NH Investment & Securities will publicly offer 12 tranches of Equity Linked Securities ELS totaling 750 billion KRW from June 9 to 17, 2026. Each tranche is linked to underlying assets such as Samsung Electronics, SK Hynix, KOSPI200, and other domestic and global indices or individual stocks, with maturities in 2028 or 2029.
This ELS issuance does not involve any change in the company's common equity, thus no dilution for existing shareholders. The proceeds will be fully used for hedging transactions and purchases of high-quality bonds to ensure stable repayment.
These products are classified as high-difficulty financial investment products, with potential total loss of principal if underlying asset prices decline. The issuer NH Investment & Securities holds a strong AA+ credit rating, but investors should note that these securities are not covered by deposit protection.
The issuer's credit conversion amount for derivatives stood at approximately 4.8 trillion KRW as of end-April 2026, and specific financial indicators such as BIS ratio require reference to separate reports. ELS outstanding balances have been steadily increasing over the past three years.
[AI Summary]This ELS issuance by NH Investment & Securities is part of normal business operations, not a capital increase, thus direct impact on existing shareholders is limited. However, given the large issuance size of 750 billion KRW and high volatility of underlying assets, a sharp decline in underlying prices could increase hedging costs and affect profitability. While the AA+ credit rating provides stability, the non-principal-guaranteed structure poses high investment risk.