Kyobo Securities Issues Three Principal-Protected Equity-Linked Bonds Totaling 29.79 Billion KRW: Coupons Linked to Stock Performance with Principal Guarantee at Maturity
Kyobo Securities issues three series of principal-protected equity-linked bonds totaling 29.79 billion KRW, linked to KOSPI200, Samsung Electronics, and SK Hynix.
Each series has an offering amount of 9.91 billion, 9.94 billion, and 9.94 billion KRW respectively, with principal protection at maturity but potential loss upon early redemption.
The issuer's credit rating is AA-, and the proceeds will be used for hedging and financial investments.
These securities are unlisted and have limited liquidity, making early cash conversion difficult.
[AI Summary]Kyobo's principal-protected ELBs offer monthly coupons tied to underlying asset performance while guaranteeing principal at maturity, limiting downside risk. However, early redemption may incur principal loss and liquidity is low. The debt issuance does not dilute shareholder equity.