Kyobo Securities Issues 29.79 Billion KRW in Three Series of Equity-Linked Securities, No Share Dilution as Proceeds Used for Hedging
Kyobo Securities will issue three series of equity-linked securities totaling 29.79 billion KRW through a subscription on July 6, 2026. Series 12568 is linked to the KOSPI200 index with a low-risk rating, an annual coupon of 6.90%, and a 3-year maturity.
Series 12569 and 12570 are linked to Samsung Electronics common stock and SK Hynix common stock respectively, with normal risk ratings, annual coupons of 5.94% and 6.60%, and 1.5-year maturities. All three products are principal-protected structures, paying the principal at maturity or upon automatic early redemption.
The issuer Kyobo Securities has a stable credit rating of AA-. The proceeds will be used for hedging transactions and investments in financial products. These securities are not covered by the Depositor Protection Act and are unlisted, posing liquidity risk.
[AI Summary]This issuance by Kyobo Securities is a debt-like funding for hedging purposes, not equity, thus no dilution for existing shareholders. The offering size is only 2.4% of market cap, limiting financial impact, and the AA- credit rating indicates stability. Investors should note the principal-protected structure but also the risks of illiquidity and potential loss upon early redemption.