Hanwha Investment & Securities issues 5 billion KRW in ELB for hedging purposes, principal-protected structure with investor caution
Hanwha Investment & Securities is publicly offering 5 billion KRW worth of Hanwha SmartON ELB No. 152 derivative-linked bonds. Each bond has a face value and issue price of 10,000 KRW with a total of 500,000 bonds.
The underlying asset is Micron Technology stock listed on NASDAQ. If the underlying price never exceeds 130% of the initial price and ends between 100% and 130% at maturity, the investor receives 35% of the appreciation; otherwise, principal is repaid in full. There is no principal loss condition, but early redemption may incur a loss as the redemption price is at least 95% of fair value.
The bonds are unlisted and not covered by the Depositor Protection Act. The issuer's credit rating is AA- from NICE. The proceeds will be used for hedging transactions to ensure stable repayment and for investments in financial products.
[AI Summary]Hanwha Investment & Securities' 5 billion KRW ELB issuance is a debt financing with no equity dilution, preserving shareholder value. While the structure offers principal protection at maturity, investors should be aware of early redemption risks and potential losses. The issuer's AA- credit rating indicates relatively low credit risk.