Kyobo Securities Issued 60 Billion Won in High-Risk ELS, Non-Principal Protected Securities Caution Advised
Kyobo Securities is publicly offering a total of 60 billion won in two series of equity-linked securities linked to Samsung Electronics and SK Hynix, with 30 billion won each.
These securities are classified as high-difficulty financial investment products with very high risk, non-principal protected, and not covered by the depositor protection act, allowing for potential total loss of principal up to 100%.
The 5th series targets an annual return of 40.02% but incurs principal loss if the underlying falls below 35% knock-in barrier, while the 6th series offers a monthly coupon of 2.335% but with a 30% knock-in barrier.
Proceeds will be used for hedging underlying assets and investing in financial instruments; the issuer Kyobo Securities has a AA- credit rating and the securities are unsecured and unguaranteed.
The securities are unlisted, early redemption may result in loss of principal, and issuance may be canceled if total subscription is below 5 billion won.
[AI Summary]Kyobo Securities' 60 billion won ELS issuance is primarily for hedging and investment purposes rather than growth, with a dilution effect of only 0.49% of market cap. Despite the AA- rated issuer, the high-risk structure requires investor caution as sharp declines in stock prices can lead to significant losses.
KOSPI Filing Information
Additional Documents for Shelf Registration (Derivative-Linked Securities - Equity-Linked Securities)