Kiwoom Securities Issues 9.9 Billion KRW 4053rd Series ELS with No Dilution to Existing Shareholders
Kiwoom Securities is issuing 1 million units of the 4053rd series equity-linked securities at 9,920 KRW per unit, totaling 9.92 billion KRW, linked to the Nikkei 225, S&P 500, and Euro Stoxx 50 indices.
This non-principal-guaranteed high-risk product has a maximum loss potential of 100% of principal, offering an annual return of 6.80% if early redemption conditions are met during the 3-year maturity.
The issuance has no impact on Kiwoom's existing shares or capital, resulting in zero dilution for current shareholders.
Kiwoom Securities, rated AA by multiple agencies, plans to use the proceeds for hedging and managing financial investments.
The offering may be canceled if total subscriptions fall below 1 billion KRW, and the securities are not covered by depositor protection, unlisted, and have limited liquidity.
[AI Summary]This ELS issuance by Kiwoom Securities raises funds without diluting existing shareholders but exposes investors to potential total loss as a high-risk product. The issuer's AA credit rating is stable, but the proceeds are used for hedging rather than growth-oriented investments.