Mirae Asset Securities Issues 29.8 Billion Won Equity-Linked Bonds on Samsung Electronics Neutral Impact on Shareholder Value
Mirae Asset Securities issues two tranches of equity-linked bonds linked to Samsung Electronics common stock: Series 4000 for 9.95 billion won and Series 4001 for 19.9 billion won totaling 29.85 billion won.
The bonds guarantee principal at maturity or upon early redemption with an issue price of 9,950 won per 10,000 won face value and the issuer maintains a strong AA credit rating.
Proceeds will be used for hedging purposes including trading in the underlying asset and derivatives with zero dilution effect on existing shareholders.
These unlisted securities are not covered by the Deposit Protection Act exposing investors to the issuer's credit risk. Historical simulation shows high probability of early redemption with an annual return of approximately 7.70%.
[AI Summary]Mirae Asset Securities' ELB issuance linked to Samsung Electronics is neutral for existing shareholders with no dilution. Funds are allocated for hedging and the issuer's credit is strong but investors face liquidity and credit risks due to unlisted structure and lack of deposit insurance.