Hanwha Investment & Securities Issues 50 Billion KRW in 8 ELS Series for Hedging, No Equity Dilution
Hanwha Investment & Securities will offer a total of 8 ELS series worth 50 billion KRW from June 22 to July 1, 2026. The series include 3 Hanwha Deluxe ELS, 1 Hanwha Super Tracker ELS, and 4 Hanwha Smart ELS, with underlying assets comprising KOSPI200, HSCEI, S&P500, NIKKEI225, Tesla, SK Hynix, Samsung Electronics, Micron Technology, and Palantir.
All ELS are principal-protected-not type high-difficulty financial investment products, where losses can reach up to 100% of principal depending on underlying asset price movements, and are not covered by the Depositor Protection Act. The issuer has a credit rating of AA- and the securities are unsecured and unguaranteed, exposing investors to issuer default risk.
The proceeds will be used for hedging transactions in underlying assets and derivatives to ensure stable repayment, as well as investments in financial products. This issuance does not involve new share issuance, so no dilution for existing shareholders.
As of end-March 2026, Hanwha's total credit conversion amount for derivative-linked securities was approximately 989.2 billion KRW, with ELS outstanding at 436.8 billion KRW. These securities are unlisted and can only be liquidated via OTC trading; early redemption is at least 95% of fair value, or 90% within the first six months.
[AI Summary]Hanwha Investment & Securities issues 50 billion KRW in 8 ELS series for hedging and investment, causing no equity dilution. All products are high-risk non-principal guaranteed type with potential total loss of principal; the issuer's AA- rating is stable but earnings are volatile due to industry nature. Investors must consider underlying asset volatility and credit risk.