Samsung Securities Issues 1 Billion KRW ELB Series 2911 with Principal Protection and Fixed Return Limited Impact on Shareholder Value
Samsung Securities issues 1 billion KRW of series 2911 Equity-Linked Bond linked to Hyundai Motor common stock with a 3-year maturity maturing on June 22 2029 offering a pre-tax fixed return of approximately 12.02% or 4.00% per annum with principal protection and it is a non-listed security.
The issuer Samsung Securities holds a credit rating of AA+ from NICE and total derivatives exposure of approximately 2.43 trillion KRW. This product is not covered by the Depositor Protection Act and repayment depends on the issuer's solvency.
Shareholder return: This filing does not include any treasury stock buyback cancellation or dividend actions.
[AI Summary]This debt issuance is for hedging purposes causing no equity dilution. The fixed return structure limits upside potential in case of sharp underlying asset increases. Despite the AA+ rating the non-listed status poses liquidity risk.