Yuanta Securities Issues KRW 5 Billion ELB Series 366 Linked to Samsung Electronics and SK Hynix Principal Protected Product Credit Rating AA-
Yuanta Securities raises KRW 5 billion through Yuanta MY ELB Series 366.
The underlying assets are Samsung Electronics common stock and SK Hynix common stock with an issue price of KRW 10,000 per security for a total of 500,000 securities.
This product is a principal-protected structure that pays at least the principal at maturity or upon automatic early redemption classified as low risk grade 5 and the issuer credit rating is AA-.
The raised funds will be used for hedging transactions in underlying assets and derivatives and investment in financial investment products.
If total subscription amount is less than KRW 500 million the issuance may be cancelled and early redemption may result in principal loss.
Yuanta Securities credit rating is AA- from both Korea Ratings and NICE Investors Service.
[AI Summary]This ELB issuance by Yuanta Securities is a debt financing that does not directly dilute existing shareholders hence neutral for capital structure. The small scale of KRW 5 billion and use of proceeds for hedging and investment purposes make it neutral for growth. Although the issuer has a strong AA- credit rating the product lacks external guarantees so investors bear the credit risk of the issuer.