Hyundai Motor Securities Issuance of KRW 6 Billion Series 1598 Equity-Linked Bonds, Low-Risk Principal-Protected Product for Market Funding
Hyundai Motor Securities has filed a shelf registration for KRW 6 billion of Series 1598 equity-linked bonds linked to Korea Electric Power Corp common stock, which became effective today.
These bonds are low-risk principal-protected securities paying annual pre-tax returns of 3.911% if the underlying closes at or above 200% of the initial price at maturity, and 3.910% otherwise.
The issuer holds a credit rating of AA- from all three major Korean agencies, and proceeds will be used for hedging and financial investments.
[AI Summary]This debt issuance does not dilute shareholders and the use of proceeds is limited to hedging and working capital, offering no direct growth catalyst. The AA- rating ensures low credit risk, but the capped yield may limit investor demand in a rising rate environment.