Kyobo Securities Issues 9.95 Billion KRW in Series 12562 Equity-Linked Derivative Bonds Linked to SK Hynix, Offering Monthly Coupons and Principal Protection
Kyobo Securities is issuing its 12562nd series of equity-linked derivative bonds worth 9.95 billion KRW, linked to SK Hynix common stock. The bonds offer principal protection at maturity or upon auto-call, with a monthly coupon condition providing an annual yield of 10.80% when triggered.
The issue price is 9,950 KRW per bond with a face value of 10,000 KRW, and a total of 1 million bonds are issued. Maturity is July 5, 2029. The bonds are unlisted, limiting liquidity.
Proceeds will be used for hedging and investment in financial products. Kyobo Securities holds a credit rating of AA- as assessed by Korea Ratings and NICE Credit Rating on June 15, 2026.
These bonds are unsecured and unguaranteed, relying solely on the issuer's credit, and are not protected by the Depositor Protection Act.
[AI Summary]This principal-guaranteed derivative bond issuance does not dilute existing shareholders. Funds are allocated for hedging, focusing on stability rather than expansion. Kyobo's strong credit rating supports investor protection, but the lack of exchange listing poses liquidity risk.