Hyundai Motor Securities Issues 14.99 Billion Won Derivative-Linked Bonds, Non-Principal Protected and Unlisted Liquidity Risk
Hyundai Motor Securities issues the 614th series of other derivatives-linked bonds worth 14.99 billion won on July 3, 2026, with a maturity of 95 days on October 6, 2026.
The underlying asset is the USD/KRW exchange rate; the product is not principal-protected and not covered by depositor protection, posing potential loss of principal.
Depending on the underlying asset's level at maturity, the bond yields either 3.120% per annum if USD/KRW is at least 2,000 won or 3.110% if below.
The bond is unlisted, severely limiting liquidity; early redemption at the issuer's request may incur losses as the price is at least 95% of fair value.
The issuer holds a credit rating of AA- from major agencies, but the unsecured nature means investors face credit risk if the issuer's financial condition deteriorates.
No shareholder return measures such as share buybacks or cancellations are mentioned in this document.
Proceeds will be used for hedging and investing in financial products to ensure stable repayment.
[AI Summary]This issuance is routine capital management for hedging purposes, with no direct impact on equity or shareholder value, but the unlisted and non-principal-protected structure presents risks to investors.