Kyobo Securities Announces 20 Billion KRW Issuance of Equity-Linked Bonds Principal-Protected Structure with Monthly Coupons for Funding and Hedging
Kyobo Securities filed a supplementary shelf registration statement on July 8, 2026, announcing the issuance of 20 billion KRW in equity-linked bonds series 12604 low risk and 12605 normal risk.
These principal-protected bonds pay conditional monthly coupons: 0.5675% per month for the 12604 series if the KOSPI200 index closes at or above 60% of its initial level, and 0.685% per month for the 12605 series if Hyundai Motor stock closes at or above 65% of its initial level.
The proceeds will be used for hedging transactions in underlying assets and derivatives to ensure stable payment of redemption amounts.
Kyobo Securities maintains a strong credit rating of AA- and received an unqualified audit opinion on its K-IFRS financial statements.
In fiscal year 2025, Kyobo Securities reported net income of 139.3 billion KRW and equity of 2.1207 trillion KRW, demonstrating solid financial health.
[AI Summary]This 20 billion KRW principal-protected ELB issuance is a routine addition under an existing shelf registration, resulting in no equity dilution. The bonds guarantee principal at maturity and provide conditional coupons, with low default risk given the issuer's AA- credit rating and solid financials. Investors should be aware of credit and liquidity risks.