NH Investment & Securities Issues 396 Billion KRW in ELS for Hedging Purposes

NH Investment & Securities is raising a total of 39.6 billion KRW through the issuance of Equity-Linked Securities series 24899 and 24900. Series 24899 amounts to 9.9 billion KRW with subscription closing on July 8, 2026, while series 24900 amounts to 29.7 billion KRW closing on July 9, 2026; both mature on July 5, 2029.
The proceeds will be fully used for hedging transactions to ensure stable repayment of the ELS, including investment in high-quality debt securities and derivatives trading on underlying assets. This is debt financing that does not dilute shareholder equity.
NH Investment & Securities holds an AA+ credit rating from Korea Corporate Rating. These securities are high-difficulty financial investment products not covered by deposit insurance, with a maximum potential loss of 100% of principal, requiring investor caution.
[AI Summary]The 39.6 billion KRW ELS issuance is debt financing for hedging purposes without equity dilution, thus having limited direct impact on existing shareholder value. However, these non-principal-protected high-risk products expose investors to issuer credit risk, and the use of proceeds for hedging rather than productive investment offers little growth catalyst.