Kyobo Securities is publicly offering KRW 3 billion of its 441st equity-linked bonds linked to Samsung Electronics and SK Hynix, with a subscription period from July 7 to July 16, 2026.
The 3-year bond offers a monthly coupon of up to 10.05% per annum but no coupon if the underlying assets fall below 65% of the initial price; at maturity, principal is fully returned only if both assets are above 85% of the initial price, making it a principal-protected structure.
The issuer, Kyobo Securities, maintains a stable AA- credit rating, and the proceeds will be used for hedging underlying assets. However, the product is not protected by the Depositor Protection Act and is subject to the issuer's credit risk.
[AI Summary]Kyobo's new ELB issuance is a small-scale debt offering based on its own credit, causing no dilution or capital structure change for existing shareholders. Investors should consider the underlying asset volatility and the issuer's credit risk despite the principal-protected nature.