DB Securities Issues Series 878 and 879 Equity-Linked Derivative Bonds, No Share Dilution and Funds Used for Hedging
DB Securities issued Series 878 and 879 DB Safe Equity-Linked Derivative Bonds on June 15, 2026, based on Samsung Electronics common stock. The initial target amounts were 29,970,000,000 KRW and 29,910,000,000 KRW, but actual subscriptions were only 6,586,107,300 KRW and 3,521,802,800 KRW, indicating low demand.
The total raised funds of 10,107,910,100 KRW will be fully used for hedging transactions such as over-the-counter derivatives to ensure stable repayment at maturity, imposing no dilution on existing shareholders.
These bonds are unlisted and structured to repay at least principal at maturity, not classified as highly complex financial instruments, but additional losses may occur due to factors other than underlying asset price changes.
[AI Summary]DB Securities' issuance of equity-linked bonds involves no equity change, so no shareholder dilution, but low subscription rates signal weak demand. Funds are used for hedging, not growth, limiting short-term stock price impact.