Kyobo Securities Issues 29.7 Billion KRW High-Risk ELS Linked to KOSPI200, S&P500, and EUROSTOXX50; Max 100% Loss Possible, No Capital Dilution, Neutral for Shareholders
Kyobo Securities will issue the 13632nd series of equity-linked securities amounting to 29.7 billion KRW with subscription on July 21, 2026. The underlying assets are KOSPI200, S&P500, and EUROSTOXX50 indices, with maturity on July 24, 2029.
This security is classified as a high-difficulty financial investment product grade 2, non-principal-protected. If any underlying falls below 50% of its initial level at maturity, investors may lose up to 100% of principal. Auto-call conditions are set at 70% for the first four observation dates and 60% for the fifth, offering an annual yield of 20.30%.
The issuance does not involve new share issuance, so there is no dilution for existing shareholders. Proceeds will be used for hedging transactions and investment in financial products, reflecting routine business operations.
Kyobo Securities holds an AA- credit rating from Korea Ratings and NICE Investors Service. The 2025 financial statements received an unqualified audit opinion from Ernst & Young Han Young.
[AI Summary]This ELS issuance is part of Kyobo Securities' ordinary funding and hedging activities, with no capital impact and neutral effect on shareholder value. The AA- credit rating indicates low counterparty risk, but investors should be aware of potential 100% principal loss and illiquidity due to the unlisted nature of the product.
KOSPI Filing Information
Additional Documents for Shelf Registration (Derivative-Linked Securities - Equity-Linked Securities)