Hanwha Investment & Securities Issues 19.9 Billion KRW in KOSPI200-Linked ELBs, Investors Must Note Product Features and Risks
Hanwha Investment & Securities will issue Hanwha Smart ELB No. 1138 and No. 1139 totaling 19.9 billion KRW with subscription on July 6, 2026.
Each security is an unlisted derivative-linked bond with 3-year maturity linked to the KOSPI200 index.
Series 1138 offers early redemption at 6.65% per annum if the index is at least 75% of the initial level, while Series 1139 offers 7.25% per annum with an 80% threshold.
At maturity, if the index meets the respective threshold, investors receive up to 19.95% or 21.75% return; otherwise only principal is repaid.
The issuer has a credit rating of AA- from NICE, but the securities are unsecured and not protected by the depositor protection act.
As unlisted securities, liquidity is limited; early redemption may incur loss as the price is set at 95% or more of fair value or 90% within 6 months of issuance.
Proceeds will be used for hedging and underlying asset transactions, and there is risk of principal loss if the issuer's financial condition deteriorates.
[AI Summary]Hanwha Investment & Securities' ELB issuance represents a capital-neutral debt offering for hedging purposes, exposing investors to market and credit risks. While issuer credit is strong, liquidity risk from unlisted status and early redemption conditions must be considered, and fulfillment of principal protection conditions is key to returns.