Hanwha Investment & Securities Issues 5 Billion Won ELS Linked to SK Hynix with Up to Full Principal Loss
Hanwha Investment & Securities is issuing Hanwha Super Tracker ELS No.30194, a principal-not-guaranteed derivative security linked to SK Hynix common stock, with a total offering of 5 billion won.
This 1-year ELS features an autocall trigger at 80% of the initial price after 3 months, offering an annualized return of 33.86%, and at maturity a 200% participation rate if the underlying is above 100%, but a linear loss equal to the decline if below 100%, leading to potential total loss.
Classified as a high-complexity financial product, it is not listed on an exchange, thus low liquidity, and the issuer's credit rating is AA-.
The proceeds will be used for hedging transactions and financial investments; the offering may be cancelled if total subscriptions fall below 1 billion won.
[AI Summary]Hanwha Investment & Securities' 5 billion won ELS issuance is part of normal operations with no equity dilution, and while the issuer's AA- credit rating implies low default risk, the principal-not-guaranteed structure exposes investors to potential total loss.