NH Investment & Securities ELS Series 24964 and 24965 Prospectus Effective High-Risk Non-Principal Protected Products with Potential 100% Loss
The prospectus for NH Investment & Securities ELS series 24964 and 24965 became effective on July 7, 2026.
Series 24964 raises KRW 9.9 billion linked to KOSPI200, S&P500, and EuroStoxx50 indices, offering up to 20.3% annual return but with potential 100% principal loss if any underlying falls below 50% of initial level.
Series 24965 raises USD 9.9 million linked to NIKKEI225, S&P500, and EuroStoxx50 indices, offering up to 8% annual return but with potential 100% loss if any underlying falls below 60% and additional FX risk.
Both tranches are unlisted, high-difficulty financial products with limited liquidity and early redemption at potentially loss-making prices; issuer NH Investment & Securities holds AA+ credit rating but the securities are unsecured.
[AI Summary]This ELS issuance does not dilute existing shareholders as it is debt-like funding for hedging. However, the products carry extreme risk due to high knock-in barriers and potential total loss. While the issuer's credit is strong, investors must carefully assess the complex payoff structure, lack of exchange listing, and unfavorable payout scenarios if markets decline.