Kyobo Securities Issues 29.7 Billion KRW High-Risk Equity-Linked Securities, Funds Used for Hedging
Kyobo Securities is issuing 29.7 billion KRW worth of its 13625th series equity-linked derivative securities with high-risk classification. The product is linked to S&P500, EUROSTOXX50, and NIKKEI225 indices, is non-principal protected, and classified as a highly complex financial investment product.
The issue price is 9,900 KRW per security with a face value of 10,000 KRW, offering 3 million securities. Subscriptions are limited to Woori Bank trust customers with a minimum subscription of 1 million KRW.
Maturity is July 12, 2029, with monthly coupon of 0.65% conditional on all indices above 60% of initial level, and five auto-call dates. If any index falls below 60% at maturity, principal loss occurs with maximum loss of 100%.
Issuer Kyobo Securities has a credit rating of AA- from KIS and NICE, indicating stable credit quality. However, the securities are not protected by the depositor protection act and are unsecured, so issuer default could lead to loss.
Proceeds will be used for hedging transactions and investment in financial products to ensure stable repayment.
[AI Summary]This ELS issuance is neutral for shareholders as it involves no equity dilution and the funds are used for operational hedging rather than growth. The AA- credit rating mitigates issuer risk, but the high-risk nature of the product warrants caution for investors.
KOSPI Filing Information
Additional Documents for Shelf Registration (Derivative-Linked Securities - Equity-Linked Securities)