Kyobo Securities Derivative Bond Series 50255 Issued with Only 24% Subscription... Funds Used for Hedging
Kyobo Securities issued its 50255th equity-linked derivative bond, achieving only 24% subscription with 24 billion won raised out of the planned 100 billion won.
The bond has a one-year maturity and offers an annual return of approximately 3.80%, linked to KEPCO common stock.
The proceeds will be used to hedge the issuer's obligations by trading underlying stocks and derivatives.
No new shares are issued, so there is no dilution for existing shareholders. The low subscription rate may indicate weak market demand.
[AI Summary]Kyobo Securities raised 24 billion won via a derivative bond issuance, but only 24% was subscribed, reflecting poor market reception. Funds are allocated for hedging, supporting financial stability rather than growth. No dilution impact, but the bond's terms may be less attractive compared to market rates.