Samsung Securities Confirms Issuance of 10 Billion KRW 2922nd Equity-Linked Derivative Bond with Principal Protection and Up to 8.4% Annual Return
Samsung Securities has officially confirmed the issuance of its 2922nd Equity-Linked Derivative Bond via a supplementary shelf filing on July 8, 2026. This offering is part of a 6.5 trillion KRW shelf registration effective January 1, 2026, and aims to raise 10 billion KRW.
The bond is linked to Samsung Electronics common stock with a 3-year principal-protected structure. It pays a monthly coupon of 0.7% of face value when the underlying closes at or above 80% of the initial strike price, offering a maximum annualized yield of 8.4%. Auto-call triggers at 100% of the strike price, and at maturity principal plus the final coupon is paid.
Proceeds will be used for hedging activities including trading in underlying assets and derivatives, as well as investments in financial instruments to ensure stable repayment.
The bond is not covered by the depositor protection act and carries the issuer's AA+ credit rating. Early redemption may result in principal loss, and liquidity is limited before maturity.
Samsung Securities reported a net profit of 971.3 billion KRW in 2025 with total equity of 7.64 trillion KRW. Its consolidated net capital ratio stands at 2,095%, well above regulatory requirements.
[AI Summary]This principal-protected equity-linked bond offers upside potential up to 8.4% annually while limiting downside risk through principal guarantee at maturity. Given Samsung Securities' strong credit profile and robust capital base, credit risk is low, but investors should be aware of liquidity constraints and auto-call features that cap returns. Early redemption may incur losses.