Kyobo Securities Issues 10 Billion KRW in 1242nd Series Derivative-Linked Bonds Linked to 3-Month Treasury Rate with Principal Protection at Maturity
Kyobo Securities issues 10 billion KRW in 1242nd series derivative-linked bonds, linked to the 3-month treasury bond rate as underlying asset.
The product is structured to repay at least principal at maturity, offering an annual return of 3.80% if the underlying rate is 8% or below, and 3.79% if above.
The issuer has a stable AA- credit rating, but early redemption may incur principal loss and the bonds are unlisted, limiting liquidity.
[AI Summary]Kyobo Securities raises 10 billion KRW via derivative-linked bonds for hedging and investment. No shareholder dilution, but risks include illiquidity and potential loss on early redemption.