Mirae Asset Securities Issues 80 Billion KRW ELB Series 3991 with Principal Protection for Hedging Purposes
Mirae Asset Securities is issuing 80 billion KRW worth of its 3991th series derivative-linked bond ELB. The product is linked to KOSPI200 index and Samsung Electronics common stock with a low-risk rating and guarantees at least 103.74% of principal at maturity.
Proceeds from the issuance will be used for hedging underlying assets and investing in financial instruments. This routine capital management does not significantly impact shareholder value.
The bond is unlisted and early redemption may incur principal loss. The issuer has a strong AA credit rating but the product is not protected by the depositor protection act.
[AI Summary]The 80 billion KRW ELB issuance represents only 0.25% of market cap causing no dilution. The funds are used for routine hedging making it neutral for shareholder value. Given the issuer's AA credit rating credit risk is low.