Daishin Securities Issues 1115th Equity-Linked Bond Worth 25 Billion KRW, Low-Risk Product for Retirement Pension Funds with Fixed 3.95% Annual Return
Daishin Securities confirmed the effectiveness of the securities registration for its 1115th equity-linked bond on July 7, 2026, finalizing the prospectus.
This issuance amounts to 25 billion KRW, linked to KEPCO common stock, with a 364-day maturity structured as a low-risk product.
Investors receive a fixed annual return of 3.95% regardless of the underlying asset price, or 3.951% if the underlying closes above 200% of the initial price at maturity.
Subscription is restricted to retirement pension funds, and the bonds are not listed on the Korea Exchange, limiting liquidity before maturity.
Issuer credit rating is AA- from major agencies, but the product is not covered by the depositor protection act and carries issuer default risk.
Proceeds will be used for hedging the underlying asset and investing in financial instruments.
No share buyback or cancellation is involved; this debt issuance does not dilute existing shareholders.
[AI Summary]Daishin Securities issued a 25 billion KRW equity-linked bond exclusively for retirement pension funds, guaranteeing principal and a fixed 3.95% annual return independent of the underlying asset. While the AA- credit rating is solid, the unlisted nature and lack of deposit insurance highlight liquidity and credit risks. For shareholders, the bond issuance is neutral with no dilution, but the use of proceeds for hedging indicates no growth-oriented deployment.