Hanwha Investment & Securities Issues ELBs Worth 29.96 Billion KRW: Maturity Date Correction Included, Proceeds for Hedging

Hanwha Investment & Securities issues the Hanwha Smart ELB Series 1114 and 1115, equity-linked bonds totaling 29.96 billion KRW via public offering. Series 1114 amounts to 19.98 billion KRW maturing on December 23, 2026, and Series 1115 amounts to 9.98 billion KRW maturing on June 24, 2027, both linked to SK Hynix common stock.
These securities are unlisted and not protected by the Depositor Protection Act. Investors may request early redemption at 95% or more of fair value but face potential principal losses. Hanwha Investment & Securities holds an AA- credit rating.
Proceeds will be used for hedging transactions in underlying assets and derivatives to stabilize repayment capacity, focusing on risk management rather than business expansion.
This debt issuance does not dilute existing shareholder equity. However, principal loss risk depends on the issuer's financial health; details such as BIS ratio and NPL should be referenced from the quarterly report.
[AI Summary]Hanwha Investment & Securities raises 29.96 billion KRW via principal-protected ELBs for hedging purposes, avoiding shareholder dilution. However, the use of funds for risk management rather than productive investment limits upside potential for the stock. Investors must consider the AA- credit rating and illiquidity risk.