Hyundai Motor Securities Files Registration for Series 1593 Equity-Linked Bonds Linked to Samsung Electronics Worth KRW 15.4 Billion, No Shareholder Dilution
Hyundai Motor Securities filed a supplementary registration statement on June 30, 2026 for series 1593 equity-linked bonds with ordinary risk linked to Samsung Electronics common stock.
The offering size is USD 9,980,000 approximately KRW 15.4 billion, with a face value of USD 1,000 and issue price of USD 998 per security, maturing on January 13, 2027 a 6-month tenor.
At maturity, the bond pays an annual pretax return of 4.050% if the underlying asset is at or below 500% of the initial price, otherwise 4.040%, with principal protected from underlying price movements.
The securities are unlisted, not covered by depositor protection, subscription limited to Hana Bank trust clients with a minimum of USD 1,000.
Proceeds will be used entirely for hedging underlying assets and investing in financial instruments, with no equity dilution or capital structure changes, thus minimal impact on existing shareholder value.
The issuer holds an AA- credit rating from all three major Korean agencies, received an unqualified audit opinion from Samjong KPMG for 2025 financials, and maintains a strong net capital ratio of 554.51%.
Annual dividend for 2025 was KRW 370 per common share totaling KRW 22.9 billion, and consolidated net income for Q1 2026 reached KRW 26.6 billion up 37% year-on-year.
[AI Summary]This ELB issuance by Hyundai Motor Securities is a debt financing with zero shareholder dilution and is neutral to shareholder value. The AA- credit rating and strong capital ratio support credibility, but the use of proceeds for hedging and investment limits growth impact. Investors should note the unlisted and non-deposit-protected nature of the product.