Yuanta Securities Issues KRW 30.9 Billion DLB with Principal Loss Risk and FX Exposure

Yuanta Securities is issuing DLB Series 1001 worth USD 20 million approximately KRW 30.9 billion.
The DLB is linked to the USD/KRW exchange rate, offering an annual return of 3.95% or 3.96% at maturity depending on the exchange rate.
This product is not protected by the depositor protection act, and while the issuer's credit rating is stable at AA- low liquidity due to non-listing may cause principal loss upon early redemption.
Proceeds will be used for hedging and investment in financial products, with no capital expansion effect.
The issuer's credit rating is AA- from Korea Ratings and NICE Investors Service.
[AI Summary]Yuanta Securities' DLB issuance is a debt financing with no change in equity, thus no shareholder dilution. The use of proceeds for hedging and investment is neutral for growth, and the AA- credit rating is solid, but the non-listed structure poses liquidity risk. Investors must understand FX volatility and early redemption conditions.