Hanwha Investment & Securities raised a total of 28.9 billion KRW through three series of equity-linked derivative bonds. The actual subscription rate was only about 36.2% of the total offering of 79.8 billion KRW, indicating weak demand.
The proceeds will be used for hedging transactions to manage early and maturity redemption risks, which is a routine operational activity for a securities firm.
[AI Summary]This issuance is debt-like with no equity dilution, but the low subscription rate signals a decline in market confidence and may negatively impact the stock price. The profitability improvement effect is limited, and future similar issuances may face higher funding costs.