Hanwha Investment & Securities Issues 1.994 Billion KRW Smart ELB No.1122, Principal-Protected Structure for Funding and Hedging
Hanwha Investment & Securities issues Hanwha Smart ELB No.1122, a derivative-linked bond worth 1.994 billion KRW on June 15, 2026. The bond is linked to Samsung Electronics and Hyundai Motor common stocks, with a 3-year maturity, principal-protected structure, auto-call features, and monthly coupon payments.
The issue price is 9,970 KRW per 10,000 KRW face value, a slight discount. Subscription is limited to Hana Bank Trust Division. Proceeds will be used for hedging and derivatives investment, and there is no dilution to existing shareholders.
Hanwha Investment & Securities has a credit rating of AA-, indicating stable creditworthiness. The bond is not covered by deposit insurance, exposing investors to the issuer's credit risk. Early redemption may result in principal loss if redeemed at fair value minus costs.
[AI Summary]Hanwha Investment & Securities' 1.994 billion KRW ELB issuance is a debt offering for hedging purposes with no equity dilution, thus limited impact on shareholder value. Although principal-protected, investors should be aware of the issuer's credit risk and potential losses upon early redemption.