DB Securities Issues 20 Billion KRW Worth of DLB, Maintains A+ Stable Credit Rating

DB Securities filed a securities registration statement on June 11, 2026, to publicly offer two series of Derivative-Linked Bonds DLB, Dream Big Series 138 and 139, totaling 20 billion KRW. Each series is 10 billion KRW with underlying asset being 3-month Treasury bond rate, offering annual yields around 3.2% and classified as low risk grade 5.
The bonds are unlisted, unsecured, and not protected by the Depositor Protection Act. The issuer's credit rating is A+ stable from three agencies, indicating strong solvency, but investors face principal loss risk upon early redemption.
The proceeds will be used for hedging and investment in underlying assets and derivatives to ensure stable repayment, which is routine risk management rather than growth capital.
There is no shareholder return or capital change; no equity dilution occurs. DB Securities maintains A+ stable ratings from NICE, Korea Ratings, and KIS.
[AI Summary]DB Securities' issuance of 20 billion KRW DLB for hedging purposes is a debt financing with no equity dilution, thus limited direct impact on shareholder value. Credit risk is low due to A+ stable rating, but liquidity risk exists due to non-listing, and early redemption may cause principal loss.