NH Investment & Securities Issues 100 Billion KRW in Retirement Pension ELS for Hedging Purposes
NH Investment & Securities is publicly offering a total of 100 billion KRW in two series of principal-protected ELS linked to Samsung Electronics and SK Hynix common stocks, Series 63 and 64 each worth 50 billion KRW.
The issue date is July 2, 2026, with a maturity of July 2, 2029, making them 3-year products. Series 63 offers a 7% annual return with an autocall barrier of 70%, while Series 64 offers 17.7% annual return with barriers of 85% and 80%. Both are unlisted and available only through retirement pension accounts.
All proceeds will be used for hedging transactions to ensure stable repayment. The issuer has a strong credit rating of AA+, but these securities are not protected by the Depositor Protection Act and involve potential principal loss.
[AI Summary]NH Investment & Securities' issuance of 100 billion KRW in retirement pension ELS is part of routine operations, neutral to shareholder value. There is no equity dilution, and funds are used for hedging without enhancing growth. The AA+ credit rating indicates low default risk, but the principal-protected structure and unlisted nature expose investors to principal loss and liquidity risk.