Kyobo Securities 29.85 Billion KRW Equity-Linked Bond Registration Effective Monthly Coupon 0.5675% with Principal Protection at Maturity
Kyobo Securities has received effectiveness for its 12602nd equity-linked bond low risk grade 5 with a total offering of 29.85 billion KRW on July 8 2026.
The bond is linked to the KOSPI200 index and pays a monthly coupon of 0.5675% equivalent to 6.81% per annum if the index closes at or above 65% of the initial strike price on each coupon evaluation date.
Automatic early redemption is triggered if the index is at or above 75% of the initial strike on any semi-annual evaluation date starting from month 6 paying 100% of principal. At maturity principal is fully protected even if the index falls below 75%.
Issuer Kyobo Securities has a credit rating of AA- indicating stable creditworthiness but the note is not covered by depositor protection and is unlisted leading to limited liquidity. Early redemption may result in principal loss.
Proceeds will be used for hedging and investment in financial instruments. The issuance may be cancelled if total subscriptions are below 300 million KRW.
[AI Summary]This debt issuance by Kyobo Securities does not dilute existing shareholders and provides funding for hedging activities. The principal protection feature limits downside risk for investors but the lack of listing and early redemption costs pose liquidity risks. With an AA- credit rating the issuer is credible making this suitable for yield-seeking investors with a conservative risk profile.