NH Investment & Securities Issues Additional 100 Billion KRW Retirement Pension ELS, Proceeds Used for Hedging with No Dilution to Existing Shareholders
NH Investment & Securities is publicly offering two series of Equity-Linked Securities for retirement pension accounts, series 58 and 59, each worth 50 billion KRW totaling 100 billion KRW.
This issuance utilizes the remaining shelf registration limit and does not involve new equity issuance, thus causing no dilution to existing shareholders.
The proceeds will be fully used for hedging transactions to secure stable repayment, including investments in high-grade debt securities and derivatives related to underlying assets.
Series 58 is linked to Samsung Electronics and SK Hynix with a maximum principal loss of -1%, while series 59 is linked to the KOSPI200 index with a maximum principal loss of -20%.
NH Investment & Securities holds a credit rating of AA+ from Korea Ratings, but these securities are not covered by the Depositor Protection Act and are unlisted, posing liquidity risk.
The issuer warns that the underlying assets are near their 20-year highs within the last six months, increasing the risk of loss if market corrections occur.
[AI Summary]NH Investment & Securities issues an additional 100 billion KRW in retirement pension ELS, a debt-like funding that does not dilute existing shareholders. The proceeds are used for hedging. Despite the issuer's AA+ credit rating, investors should note the potential for principal loss and limited liquidity inherent in ELS products.
KOSPI Filing Information
Additional Documents for Shelf Registration (Derivative-Linked Securities - Equity-Linked Securities)