Kiwoom Securities Issues 19.9 Billion KRW Equity-Linked Bonds for Hedging and Investment
Kiwoom Securities issues two types of equity-linked bonds totaling 19.9 billion KRW. Issue 1253 is linked to Samsung Electronics common stock and Issue 1254 is linked to the KOSPI200 index, each raising 9.95 billion KRW.
These are principal-protected low-risk grade 5 products with a 3-year maturity, cash settlement, and no exchange listing, limiting liquidity. The issuer's credit rating is AA from three agencies including Korea Ratings.
Proceeds will be used for hedging and investment in underlying assets and derivatives to ensure stable repayment. Issuance may be canceled if total subscriptions fall below 1 billion KRW.
[AI Summary]Kiwoom Securities' ELB issuance is a debt financing without equity dilution, posing no threat to existing shareholders. However, the use of funds for hedging and investment rather than growth is neutral, and the strong credit rating keeps default risk low.