DB Securities Issues 2 Billion KRW DLB, Proceeds for Hedging – Limited Impact on Shareholder Value

DB Securities issues the DB Dream Big 137th series derivative-linked bond DLB with a low risk grade of 5, totaling 2,000,000,000 KRW. Each security has a face value of 10,000 KRW, with 200,000 securities issued, and the underlying asset is the 3-month Treasury bond rate. The product offers a maximum annual return of 6.01% at maturity with principal protection.
The raised funds will be used for underlying asset transactions and derivative hedging to ensure stable repayment under the issuance conditions. This is part of DB Securities' routine risk management activities, resulting in no shareholder dilution but limited new revenue generation.
DB Securities' credit rating is A+ stable from three agencies including NICE Credit Rating. This product is not protected by the Depositor Protection Act, and principal loss may occur if the issuer's financial condition deteriorates. Early redemption is available at 90% or more of fair value, but principal loss is possible.
[AI Summary]DB Securities' 2 billion KRW DLB issuance is a routine funding operation using proceeds for hedging without equity dilution, having limited impact on shareholder value. While the issuer holds an A+ credit rating, the product lacks deposit insurance and carries early redemption risk, warranting cautious investment. Overall, it is evaluated as a neutral event.