Hanwha Investment & Securities Files Shelf Registration for Two ELB Issues Totaling KRW 10 Billion, Credit Risk Remains Despite Principal Protection Structure
Hanwha Investment & Securities filed a supplementary shelf registration on July 3, 2026 for two Equity-Linked Bonds ELB series 154 and 155, which became effective.
Each series is KRW 5 billion totaling KRW 10 billion, linked to Micron Technology and SK Hynix common stock, and will not be listed on an exchange.
Series 154 matures on October 14, 2026, with a knock-out structure and principal protection, but early redemption may incur losses.
Series 155 matures on July 19, 2029, with an autocall structure and monthly coupon conditions, also principal protected at maturity.
The issuer has a credit rating of AA-, and the bonds are unsecured and not covered by the depositor protection act.
[AI Summary]This shelf registration involves small-scale principal-guaranteed ELBs with no dilution for existing shareholders. However, as unsecured bonds, the issuer's credit risk and illiquidity due to non-listing are key risk factors for investors.