Hanwha Investment & Securities Issues KRW 19.9 Billion DLB Linked to USD/KRW - Principal-Protected Structure, Proceeds for Hedging

Hanwha Investment & Securities is issuing the Hanwha Smart DLB No. 562, a derivative-linked bond worth KRW 19.99 billion.
This principal-protected note is linked to the USD/KRW exchange rate, offering an annual return of 3.12% if the rate is at least KRW 2,000 at maturity, or 3.11% otherwise.
The issuer has a credit rating of AA- and will use the proceeds for hedging underlying assets and investing in financial products.
The bond is unlisted, and early redemption may result in principal loss; subscription is limited to IBK Industrial Bank trust department.
No shareholder return or capital changes are involved.
[AI Summary]This KRW 19.99 billion debt issuance has no dilution effect, limiting impact on existing shareholders. Fund usage for hedging and investment offers limited growth potential, but the AA- credit rating reflects strong creditworthiness. Investors should consider exchange rate scenarios and early redemption risks.