Hyundai Motor Securities Issues 45.3 Billion KRW in Equity-Linked Bonds Tied to Samsung Electronics, Non-Dilutive Funding with AA- Credit Rating
Hyundai Motor Securities will publicly issue two series of equity-linked bonds linked to Samsung Electronics common stock on July 6, 2026, totaling 45.3 billion KRW.
Series 1584 amounts to 29.985 billion KRW with a low risk grade offering annual returns of 3.09% to 3.10% and maturing on October 6, 2026. Series 1585 amounts to approximately USD 9.97 million equivalent to 15.326 billion KRW with a normal risk grade offering annual returns of 4.29% to 4.30% and maturing on July 6, 2027.
The proceeds will be used for hedging transactions and financial investments to ensure stable redemption, with zero dilution to existing shareholders.
Hyundai Motor Securities holds an AA- credit rating from NICE, KIS, and KR, and these bonds are not protected by the Depositor Protection Act.
[AI Summary]Hyundai Motor Securities' 45.3 billion KRW ELB issuance is a non-dilutive debt funding neutral to capital structure. The use of proceeds for hedging and investment is conservative for growth but supports stable returns. With an AA- rating and market position, governance risk is low, yet investors should note liquidity risk due to unlisted status and potential losses tied to Samsung Electronics stock performance.