Hyundai Motor Securities Prospectus for Series 619-621 DLBs Totaling KRW 35.48 Billion Becomes Effective, Shareholder Impact Neutral
On July 2, 2026, the securities registration statement for Hyundai Motor Securities Series 619, 620, and 621 derivative-linked bonds became effective.
Series 619 is KRW 10 billion low-risk class with 92-day maturity, underlying asset 3-month treasury bond rate, and pre-tax yield of 3.35% to 3.36% per annum. Series 620 is KRW 9.985 billion low-risk class with 184-day maturity, same underlying, pre-tax yield 3.50% to 3.51%. Series 621 is USD 9.97 million approximately KRW 15.5 billion ordinary-risk class with 184-day maturity, USD-denominated, pre-tax yield 3.80% to 3.81%.
The proceeds will be used for hedging underlying assets and derivatives transactions and investing in financial instruments, which is part of routine funding and risk management activities.
These bonds are pure debt securities with no equity conversion rights, so no dilution of existing shareholders occurs. The issuance size is about 6.8% of market capitalization, but since it is debt, the direct impact on shareholder value is limited.
The issuer Hyundai Motor Securities has a credit rating of AA- stable, but these bonds are not covered by the Depositor Protection Act and are unlisted, posing liquidity risk.
This disclosure does not include any shareholder return policies such as treasury stock acquisition, cancellation, or dividends.
The outstanding balance of derivative-linked bonds is KRW 432.5 billion, and credit equivalent amount is KRW 694.1 billion.
[AI Summary]This DLB issuance registration by Hyundai Motor Securities is part of routine funding and hedging activities, with no equity dilution, thus neutral for shareholder value. The AA- credit rating and low-risk classification suggest low credit risk, but investors should be aware of unlisted status and potential principal loss upon early redemption.