Hanwha Investment & Securities Issues 14.9 Billion KRW KOSPI200-Linked Derivative Bonds with Principal Protection and Autocall Features
Hanwha Investment & Securities publicly offers Hanwha Smart ELB No. 1121, a derivative-linked bond worth 14.925 billion KRW linked to the KOSPI200 index. Issue price is 9,950 KRW per bond versus face value of 10,000 KRW with maturity on June 13, 2029.
This principal-protected product provides an annual return of about 7% if the underlying index is at or above 80% of the initial level at maturity or autocall; otherwise, full principal is returned.
Issuer credit rating stands at AA- stable. Proceeds will be used for hedging and investment in financial products. As a debt issuance, there is no dilution of common shares.
[AI Summary]Hanwha Investment & Securities' ELB offering is a routine debt issuance with no material impact on shareholder value or capital structure. While the principal-guaranteed structure appeals to risk-averse investors, credit risk and potential losses from early redemption should be considered.