Hanwha Investment & Securities Issues 69.65 Billion Won Equity Linked Bonds for Hedging and Investment Purposes
Hanwha Investment & Securities will issue three Equity Linked Bonds on June 29, 2026: Smart ELB 1124, 1125, and 1126.
Total offering amount is 69.65 billion won with underlying assets being Samsung Electronics common stock and KOSPI200 index.
Issue price is 9,950 won per security, a 0.5% discount to the face value of 10,000 won, slightly below theoretical value.
These securities are unlisted and not protected by the Depositor Protection Act, posing a risk of principal loss.
Early redemption may result in losses as redemption price is at least 90% of fair value for the first 6 months and 95% thereafter.
The issuer's credit rating is AA- and these are unsecured unsubordinated bonds; proceeds will be used for hedging and financial investments.
Each tranche offers auto-call features: 1124 and 1125 yield 6.15% and 6.55% annually, while 1126 provides monthly coupons.
[AI Summary]This ELB issuance by Hanwha Investment & Securities raises funds for hedging, with no direct impact on shareholder value. However, investors face principal loss risk and limited liquidity based on issuer credit and market conditions.