DB Securities Reports Issuance Performance for Series 882 and 883 Equity-Linked Derivative Bonds - Raises KRW 28.59 Billion with Low Subscription Rates
DB Securities submitted the Securities Issuance Performance Report for Series 882 and 883 equity-linked derivative bonds on July 6, 2026.
Series 882 saw subscriptions of KRW 20.93 billion out of KRW 29.97 billion 69.78% and was fully allocated. Series 883 saw subscriptions of KRW 7.66 billion out of KRW 29.91 billion 25.52% and was fully allocated.
The raised funds of KRW 20.93 billion and KRW 7.66 billion, after deducting issuance costs of about KRW 1 million, will be fully used for hedging via OTC derivatives and similar instruments.
The underlying asset is Samsung Electronics common stock. The bonds offer principal protection with annual yields of 103.55% if the final price is below 500% of the initial price, and 103.54% if above.
This issuance involves no equity dilution as it is debt financing, having no impact on existing shareholder value.
[AI Summary]DB Securities' ELS issuance report reveals low subscription rates of 69.78% and 25.52% for two tranches. The total raised KRW 28.6 billion will be fully deployed for hedging, meeting risk management objectives but falling short of the original target by half, indicating weak demand. While no direct negative impact on shareholder value exists, the terms may be perceived as less attractive in the market.