Kyobo Securities Issues 470 Billion Won in Equity-Linked Bonds with KEPCO as Underlying, Principal-Protected Low-Risk Structure, Limited Impact on Shareholder Value
Kyobo Securities has issued four series of equity-linked bonds totaling 470 billion won, with Korea Electric Power Corp common stock as the underlying asset.
These bonds are principal-protected low-risk instruments, and the issuer's credit rating of AA- indicates relatively low credit risk according to the securities report.
The proceeds will be used for hedging transactions and financial investments, resulting in no equity dilution.
However, the bonds are unlisted, limiting liquidity, and early redemption may incur principal loss.
[AI Summary]The issuance of principal-protected equity-linked bonds backed by Kyobo Securities' AA- credit rating does not directly dilute existing shareholders but may increase capital costs. Investors should consider underlying asset price fluctuations and issuer credit risk.