Kyobo Securities Issues 100 Billion Won Equity-Linked Bond, Proceeds for Hedging with No Shareholder Dilution
Kyobo Securities is issuing its 50252nd equity-linked bond worth 10 billion won. The bond is linked to Korea Electric Power Corp common stock and features principal protection with low risk.
The entire proceeds will be used for hedging transactions and financial product investments to ensure stable repayment of the bond. This is for risk management, not business expansion.
This issuance does not affect outstanding shares so there is no dilution concern. Kyobo Securities holds an AA- credit rating but the bond is not deposit-protected and is unlisted, limiting liquidity.
[AI Summary]Kyobo Securities' 10 billion won equity-linked bond issuance is a hedge fund raising with no shareholder dilution and a stable AA- credit rating. However, due to product characteristics, there is risk of principal loss and liquidity constraint, so investors should fully understand the risk factors.