Kiwoom Securities Issues 134.3 Billion Won Principal-Guaranteed ELB for Hedging, Neutral Impact on Shareholder Value
Kiwoom Securities is publicly offering seven tranches of equity-linked bonds ELB from issue 1246 to 1252 totaling 134.3 billion won.
Each tranche is a principal-guaranteed structure linked to underlying assets such as Samsung Electronics, Hyundai Motor, NAVER, and POSCO Holdings, providing monthly coupon payments over three years with automatic early redemption features.
The proceeds will be used for hedging transactions including underlying asset trading and over-the-counter derivatives to ensure stable repayment, with Kiwoom acting as the sole arranger.
Kiwoom maintains an AA credit rating; these securities are not covered by the Depositor Protection Act and are unlisted, posing liquidity risk.
[AI Summary]This ELB issuance is purely debt with no conversion rights, so no equity dilution for existing shareholders. The funds are allocated to hedging operations, making a neutral short-term impact on shareholder value but potentially increasing financial costs.