Hanwha Investment & Securities Issues 10 Billion KRW Smart DLB Series 556, No Shareholder Dilution for Hedging Purpose

Hanwha Investment & Securities is publicly offering Smart DLB Series 556, a derivative-linked bond, worth 10 billion KRW at an issue price of 10,000 KRW per bond, maturing on September 28, 2026, with the 3-month Korean Treasury bond rate as the underlying asset.
This instrument is a bond without equity conversion features, causing zero dilution to existing shareholders. The proceeds will be used for underlying asset trading and over-the-counter derivative hedging to ensure stable redemption payments.
The issuer, Hanwha Investment & Securities, is a listed financial investment company with an AA- credit rating. The bond is unsecured and not protected by the Depositor Protection Act, exposing investors to the issuer's credit risk.
[AI Summary]The issuance of Smart DLB by Hanwha Investment & Securities is a debt financing without equity dilution, having limited direct impact on existing shareholders. However, there is potential for principal loss due to the issuer's credit and market volatility. The use of proceeds for hedging increases operational leverage, with a neutral short-term effect on the stock price.