Hanwha Investment & Securities Issues 20 Billion Won in Derivative-Linked Bonds for Funding and Hedging
Hanwha Investment & Securities raises 20 billion won through the issuance of Hanwha Smart DLB No. 563 derivative-linked bond. The bond is linked to the 3-month Korean Treasury rate and guarantees principal at maturity with a small return, but early redemption may result in principal loss.
The proceeds will be used for underlying asset trading and hedging of derivatives. The issuer is Hanwha Investment & Securities itself, with a credit rating of AA- reflecting a relatively stable financial position.
This bond is unlisted and not protected by the Depositor Protection Act. In case of issuer default, investors may lose both principal and returns.
[AI Summary]Hanwha Investment & Securities' 20 billion won DLB issuance is a routine funding activity without direct impact on existing shareholder value. Funds are used for hedging and investment, and the issuer's sound credit rating minimizes default risk. Investors should be aware of potential principal loss upon early redemption and limited liquidity.