Eugene Investment 732nd ELB 2.6 Billion KRW Issuance Principal Protected Fixed Return Product Credit Rating A Moderate Risk
Eugene Investment issues 732nd ELB worth 2.6 billion KRW which is only 0.6% of its market cap resulting in zero equity dilution.
This principal protected product linked to KEPCO common stock offers an annual pre-tax return of 3.721% if the underlying price at maturity is 500% or more of the initial price and 3.720% otherwise.
Proceeds will be used for hedging the derivative and investing in financial instruments while the issuance may be canceled if total subscriptions fall below 100 million KRW.
Eugene Investment credit rating is A by Korea Ratings as of September 30 2013 and this ELB is not protected by the Depositor Protection Act implying potential principal loss.
[AI Summary]The 2.6 billion KRW ELB issuance by Eugene Investment has negligible impact on shareholder value due to its small size and non-dilutive debt nature. The funds are used for routine hedging and investment purposes offering stable returns but investors must consider the issuer's credit risk and illiquidity as the bond is unlisted.