DB Securities Issues 29.9 Billion KRW ELB Linked to Samsung Electronics, Principal Protected with 3.55% Annual Return, Proceeds for Hedging
DB Securities is issuing DB Safe Series 881 Equity Linked Bonds ELB linked to Samsung Electronics common stock, totaling 29.9 billion KRW.
Each security has a face value of 10,000 KRW and issue price of 9,970 KRW, with 3 million securities issued; subscription is limited to Hana Bank trust customers.
The one-year maturity product offers an annual pre-tax return of 3.55% if Samsung Electronics price is 500% or less of the initial price, and 3.54% if above, with principal protection.
The issuer DB Securities holds an A+ stable credit rating from NICE, KIS, and KR.
Proceeds will be used for hedging in underlying assets and derivatives to ensure stable repayment under the issue terms.
This product is not protected by the Depositor Protection Act; early redemption may cause principal loss and liquidity is limited.
[AI Summary]DB Securities' ELB issuance is a debt financing without equity dilution; funds are used for hedging rather than growth, so direct impact on shareholder value is limited. The principal-protected structure exposes investors to issuer credit risk, but the A+ rating indicates sound creditworthiness, and the short-term funding cost is low.