Kyobo Securities Issues 100 Billion KRW Principal-Guaranteed Equity-Linked Bonds Linked to Samsung Electronics and SK Hynix, No Dilution for Existing Shareholders
Kyobo Securities is issuing the 12572nd Equity-Linked Derivative Bond with a total offering of 100 billion KRW, at 10,000 KRW per bond, maturing on July 10, 2029.
The bonds are linked to Samsung Electronics and SK Hynix common stocks, featuring monthly coupon payments and automatic early redemption with principal protection.
Proceeds will be used for hedging and investment in underlying assets and derivatives, a routine capital management activity for the issuer.
The bonds are unsecured and rely on Kyobo's credit rating of AA- from Korean credit agencies, indicating low credit risk. No equity dilution occurs as this is a debt issuance.
Kyobo's derivative-linked securities outstanding balance as of end-March 2026 is approximately 3.228 trillion KRW, with a credit conversion amount of about 67.289 billion KRW.
[AI Summary]Kyobo Securities raises 100 billion KRW through principal-guaranteed ELBs for hedging purposes. The issuance does not dilute existing shareholders and is backed by the company's strong AA- credit rating. Investors should consider underlying asset price risk and issuer credit risk.