Kyobo Securities Issues 29.7 Billion Won Global Index-Linked ELS, No Shareholder Dilution and Funds Used for Hedging
Kyobo Securities submitted an additional registration statement on July 8, 2026 for the issuance of its 13639th equity-linked security ELS amounting to 29.7 billion won, linked to the S&P500, EUROSTOXX50, and NIKKEI225 indices.
This ELS is a 3-year principal non-guaranteed high-difficulty financial product offering a monthly coupon of 0.7175% equivalent to 8.61% per annum, with a knock-in barrier at 55% where a breach can lead to total principal loss up to 100%.
The issuance is based on Kyobo Securities' AA- credit rating and the proceeds will be used for hedging of underlying assets and investment in financial products. No new shares are issued, so there is zero dilution for existing shareholders.
Kyobo Securities reported a net profit of 142.9 billion won on a consolidated basis for 2025, with total equity of 2.1189 trillion won, and maintains a stable financial structure with a net capital ratio above regulatory requirements.
These securities are unlisted, not covered by the depositor protection act, and early redemption may result in principal loss.
[AI Summary]The issuance of the 13639th ELS by Kyobo Securities is a routine funding and hedging activity with no capital change, making it neutral for shareholder value. The AA- credit rating indicates low issuer risk, but investors should be mindful of potential loss given the high-difficulty product structure.
KOSPI Filing Information
Additional Documents for Shelf Registration (Derivative-Linked Securities - Equity-Linked Securities)