Kyobo Securities Launches 12587th Equity-Linked Bond Offering of 9.95 Billion KRW for Hedging and Investment
Kyobo Securities issues the 12587th low-risk equity-linked bond under its existing shelf registration, with a total offering of 9.95 billion KRW and subscription date on July 20, 2026.
The bond is linked to the KOSPI200 index, features a 3-year maturity, an auto-call trigger at 80% of the initial level offering an annual yield of 6.80%, and guarantees at least 101% of principal at maturity.
Proceeds will be used for hedging transactions in underlying assets and derivatives to ensure stable repayment under the bond terms.
Kyobo Securities reported a standalone net profit of KRW 139.3 billion in 2025 and maintains an AA- credit rating, indicating low issuer credit risk.
[AI Summary]This is a routine issuance of a structured bond under an existing shelf registration, causing no shareholder dilution or capital structure change. The offering size is only 0.88% of market cap and carries no conversion rights, thus posing no equity risk. Kyobo's AA- rating and stable earnings support investor protection, but investors should note that the product is not deposit-insured and may incur principal loss upon early redemption before maturity.