Kyobo Securities Issued 19.9 Billion KRW Equity-Linked Bonds with Principal Protection and Monthly Coupons, Limited Shareholder Impact
Kyobo Securities issued four tranches of equity-linked bonds totalling 19.9 billion KRW on July 9, 2026, namely Series 12577 to 12580.
Each tranche raises 4.975 billion KRW, with underlying assets including Samsung Electronics, SK Hynix, Hyundai Motor common shares, or a combination.
The bonds guarantee 100% principal repayment at maturity or upon early redemption, and pay monthly coupons ranging from 0.7125% to 0.935% if the underlying closes above 70% of the initial strike price.
Proceeds will be used for hedging and investing in financial products to ensure stable repayment.
The issuer holds a credit rating of AA- from Korea Investors Service and NICE Ratings as of June 15, 2026, indicating sound creditworthiness, but the bonds are unsecured and not protected by the depositor protection act.
As unlisted securities, liquidity is limited and early redemption may result in principal loss.
No dilution of existing shareholders occurs.
[AI Summary]Kyobo Securities raised 19.9 billion KRW through principal-protected equity-linked bonds for hedging purposes. While no shareholder dilution and a strong AA- credit rating mitigate risks, the unlisted nature and liquidity constraints pose investment risks.