Kyobo Securities Issues 10 Billion Won ELB Linked to KEPCO, No Shareholder Dilution
Kyobo Securities issued the 50255th series equity-linked derivative bond ELB with total offering amount of 10 billion KRW, linked to KEPCO common stock.
The bond has a face value of 10,000 KRW per unit with 1 million units issued, maturing on June 25, 2027. It offers a pre-tax return of 3.80% to 3.81% per annum depending on the underlying asset price at maturity.
The issuer's credit rating is AA-, indicating low credit risk. As this is a debt issuance, there is no dilution for existing shareholders.
The proceeds will be used for hedging the underlying asset and other financial investments, representing a defensive capital allocation.
The bond is unlisted and early redemption may result in principal loss.
[AI Summary]This ELB issuance by Kyobo Securities raises 10 billion KRW in debt without diluting existing shareholders. With a AA- credit rating, credit risk is low, but investors face potential principal loss due to underlying asset volatility and liquidity constraints.