NH Investment & Securities Issues 100 Billion Won Retirement Pension ELS, Hedging Purpose and AA+ Credit Rating Maintained
NH Investment & Securities issues N2 Retirement Pension ELS Series 58 and 59 totaling 100 billion won with 50 billion won each.
The raised funds are entirely used for hedging transactions, and investors may incur principal losses depending on hedging costs and underlying asset price movements.
Series 58 is linked to Samsung Electronics and SK Hynix with a maximum loss rate of 1% while Series 59 is linked to the KOSPI200 index with a maximum loss rate of 20%.
The issuer's credit rating is AA+ stable but these securities are not protected by the depositor protection act and have no direct impact on shareholder return policies.
[AI Summary]NH Investment & Securities raised 100 billion won through retirement pension ELS issuance for hedging purposes with the issuer's AA+ credit rating being strong but the underlying-linked structure poses potential investor losses and the impact on existing shareholder value is neutral.