Kiwoom Securities Issues 19.86 Billion KRW in ELBs for Hedging and Funding
Kiwoom Securities will issue two principal-guaranteed equity-linked bonds ELBs totaling 19.86 billion KRW on June 22, 2026. The 1231st and 1232nd series each raise 9.93 billion KRW with the KOSPI200 index as underlying asset.
The proceeds will be used for hedging transactions including underlying asset trading and derivatives trading as well as investment in financial products to ensure stable repayment under the issuance terms. This will be managed according to the issuer's internal control procedures.
These securities are unlisted and may incur principal loss upon early redemption; they are not protected by the Depositor Protection Act. The issuer Kiwoom Securities has a credit rating of AA but deterioration in financial condition could lead to principal loss.
[AI Summary]Kiwoom Securities' ELB issuance raises 19.86 billion KRW through debt without diluting equity providing no capital expansion. Fund usage is limited to hedging and financial product investment closer to product management than growth creation. The AA-rated issuer's stability is high but early redemption principal loss risk and illiquidity due to non-listing are key risks for investors.