Kyobo Securities Issues 9.95 Billion Won Principal-Protected Bond Linked to SK Hynix, No Shareholder Dilution, Proceeds for Hedging
Kyobo Securities issues the 12562nd equity-linked principal-protected bond linked to SK Hynix common stock with a total offering of 9.95 billion KRW. The product guarantees 100% principal at maturity and pays a monthly coupon of 0.90% annual 10.80% if the underlying closes at or above 70% of the initial price.
The issuer Kyobo Securities holds a AA- credit rating from two agencies and intends to use the proceeds for hedging and investment in financial products. Investors face potential principal loss upon early redemption and limited liquidity due to the unlisted nature of the bond.
[AI Summary]This debt issuance by Kyobo Securities does not involve equity dilution, so shareholder value remains unchanged. Funds are allocated to hedge the product's obligations, a neutral use for growth. The AA- credit rating indicates good creditworthiness, but the unlisted structure poses liquidity risk.