Hanwha Investment & Securities Issues KRW 10 Billion DLB Linked to 3-Month KTB Rate, Limited Impact on Shareholder Value

Hanwha Investment & Securities is issuing KRW 10 billion of Hanwha Smart DLB No. 561, a derivative-linked bond maturing on October 1, 2026, with the underlying asset being the 3-month Korean Treasury bond rate.
The bond offers a principal-guaranteed structure: annual interest of 3.25% if the underlying rate is 6% or below, and 3.26% if above 6%. The issuer's credit rating is AA- from NICE.
Proceeds will be used primarily for hedging and investment in financial products, which is operational rather than growth-oriented. Thus the direct impact on shareholder value is limited.
This issuance does not involve equity dilution or capital changes, so no negative impact on existing shareholders. However, the issuer's leverage may increase slightly.
[AI Summary]Hanwha Investment & Securities' KRW 10 billion DLB issuance is a routine funding for its operations, with no equity dilution and terms consistent with its credit rating. The impact on shareholder value is neutral, with investment risk tied to the issuer's credit.