Kiwoom Securities Issues 27.7 Billion KRW in ELBs for Hedging and Investment, Neutral Impact on Shareholder Value
Kiwoom Securities issued three series of Equity Linked Bonds ELBs totaling 27.7 billion KRW, linked to Samsung Electronics common stock and the S&P500 index.
The proceeds will be used for hedging transactions and investments in financial products to meet repayment obligations, without any share dilution or share buyback.
Kiwoom Securities maintains a strong credit rating of AA from Korea Corporate Rating, NICE Credit Rating, and Korea Credit Rating, reflecting solid financial health.
These securities are not covered by the Deposit Protection Act and are not listed, leading to limited liquidity and potential principal loss upon early redemption.
[AI Summary]The ELB issuance is a routine capital management activity with no dilution; funds are deployed for hedging, resulting in a neutral financial impact on shareholders.