Hanwha Investment & Securities issued Hanwha Smart ELB No. 1119, a stock-linked derivative bond, with a total offering of 9.95 billion KRW but actual subscription of 6.86 billion KRW, achieving a 68.9% subscription rate.
The proceeds will be used for hedging the bond's risk through investments in underlying assets and related derivatives.
The bond is unlisted, with early redemption conditions tied to the KOSPI200 index, offering up to 117.4% of face value at maturity if the index stays above 70% of the initial level.
This issuance does not dilute existing shareholders' equity as it is a debt instrument.
[AI Summary]Hanwha Investment & Securities raised 6.86 billion KRW through a derivative-linked bond for hedging. The low subscription rate and debt nature imply no dilution risk but may indicate limited market appetite. The bond's structured returns tied to KOSPI200 pose moderate risk.