NH Investment & Securities Issues Additional ELS Series 24935 and 24937 Worth KRW 25.2 Billion High-Risk Products Require Investor Caution
NH Investment & Securities filed a supplementary shelf registration statement on July 1 2026 to issue two new ELS series 24935 and 24937 under its existing shelf registration. The total offering amount is approximately KRW 25.2 billion comprising KRW 9.9 billion in won and KRW 15.3 billion equivalent in US dollars.
The underlying assets are the Nikkei 225 S&P 500 and Euro Stoxx 50 indices with a step-down structure featuring early redemption barriers of 70% or 75%. Maximum pre-tax yields are 6.5% and 8.5% per annum respectively but the products are principal non-guaranteed and can incur up to 100% loss of principal if the final valuation price falls below 60% of the initial strike price.
These securities are classified as highly complex financial investment products with potential losses exceeding 20% of principal and are not protected by the Depositor Protection Act. Although the issuer has a strong credit rating of AA+ investors face early redemption costs limited liquidity and the risk of principal loss.
NH Investment & Securities paid dividends of KRW 1300 per common share and KRW 1350 per preferred share for fiscal year 2025 with payout ratios of 53.71% on a separate basis and 47.29% on a consolidated basis. The dividend yield was 6.13% for common shares and 6.91% for preferred shares reflecting solid shareholder returns.
[AI Summary]This ELS issuance is a routine operational activity for funding and hedging purposes with negligible impact on shareholder dilution or financial structure. Investors should fully understand the high-risk nature principal loss potential and liquidity constraints before making investment decisions.
KOSPI Filing Information
Additional Documents for Shelf Registration (Derivative-Linked Securities - Equity-Linked Securities)