Kiwoom Securities Issues 10 Billion KRW Principal-Guaranteed ELB Linked to Hyundai Motor Stock with Monthly Coupons and Autocall Features, No Dilution Impact
Kiwoom Securities is issuing 1,000,000 equity-linked bonds ELB with a total face value of 10 billion KRW, each at 10,000 KRW, linked to Hyundai Motor common stock.
The product offers a monthly coupon of 0.6025% annual 7.23% provided the underlying stock closes at or above 65% of its initial price on each monthly observation date, and features 11 autocall dates at 75% of initial price with principal repayment.
The bonds are principal-guaranteed at maturity if not autocalled earlier, but early redemption upon investor request may result in principal loss. The issuer Kiwoom Securities has a credit rating of AA from three Korean agencies.
The proceeds will be used for hedging and investment in financial instruments, which is a standard practice for structured products, with no dilutive effect on shareholders.
[AI Summary]Kiwoom Securities raises 10 billion KRW via principal-guaranteed ELB linked to Hyundai Motor stock. The funds support hedging operations with no capital dilution. The bonds are rated AA with robust governance, but investors face early redemption risk and market-linked returns.