Kyobo Securities Issues 200 Billion Won Equity Linked Bonds for Hedging No Dilution for Existing Shareholders
Kyobo Securities is issuing its 12559th and 12560th series of equity linked bonds linked to Samsung Electronics and Hyundai Motor, each worth 100 billion won for a total of 200 billion won.
These unlisted securities have a principal protection feature at maturity or upon automatic early redemption, but early redemption at the investor's request may result in principal loss and there is credit risk of the issuer.
The raised funds will be used for hedging and investment in financial products, with no dilution to existing shareholders.
[AI Summary]This ELB issuance by Kyobo Securities is a 200 billion won debt financing for hedging purposes without diluting existing equity, but carries credit risk given the AA- rating. Being unlisted, liquidity is limited and returns are linked to underlying asset prices.