Kyobo Securities Issues 3 Billion Won Samsung Electronics-Linked ELS with 80% Principal Protection at Maturity
Kyobo Securities issues K-ELS Series 12 equity-linked securities worth 3 billion won linked to Samsung Electronics common stock.
The securities have a 1-year maturity with 80% principal protection and offer three early redemption opportunities with an annual return of 25.10%.
At maturity, if the underlying price falls below 80% of the initial strike, a 20% loss is incurred; otherwise, losses are proportional but limited.
The issuer Kyobo Securities has a credit rating of AA- stable, but the securities are not covered by deposit insurance and carry liquidity risk with potential principal loss upon early redemption.
The proceeds will be used for hedging and financial investments.
[AI Summary]Kyobo Securities issues 3 billion won of Samsung Electronics-linked ELS, raising funds for hedging. Investors bear credit risk of Kyobo AA- and market risk of Samsung, with a maximum loss of 20%. The unlisted structure creates liquidity risk and potential additional losses on early redemption.