Hanwha Investment & Securities Issues Three ELB Tranches Worth 39.78 Billion KRW, Capital Preserving Low-Risk Products with Funds Used for Hedging
Hanwha Investment & Securities issues three series of equity-linked bonds: Smart ELB 1140, 1141, and 1142, totaling 39.78 billion KRW.
Each tranche is linked to SK Hynix common stock or the KOSPI200 index, offering principal protection at maturity or early redemption, but these products are not covered by depositor insurance.
The proceeds will be used for hedging underlying assets and derivatives, as well as investments in financial products, without any dilution to existing shareholders since no new equity is issued.
Hanwha Investment & Securities maintains an AA- credit rating and the bonds are unsecured, with repayment dependent on the issuer's ability to pay.
[AI Summary]Hanwha Investment & Securities's ELB issuance is a debt-based funding with no direct dilution for existing shareholders, but the use of proceeds for hedging suggests limited growth potential. The issuer's AA- rating and listed status provide stability, yet risks include liquidity constraints due to unlisted status and conflict of interest as the issuer also acts as calculation agent.