Kyobo Securities Files for Issuance of 199 Billion Won Equity-Linked Bonds Linked to Samsung Electronics and SK Hynix - 3-Year Maturity with Monthly Coupons
Kyobo Securities filed a supplemental shelf registration statement on July 9, 2026, to issue a total of 19.9 billion won in equity-linked derivative bonds series 12606 and 12607. The underlying assets are Samsung Electronics common stock and SK Hynix common stock, respectively, with a maturity of July 31, 2029.
Both bonds are unlisted and offer monthly coupon payments when the underlying asset's closing price is at least 65% of the initial reference price. Series 12606 provides a monthly coupon of 0.65% equivalent to 7.80% per annum, and series 12607 provides 0.825% monthly equivalent to 9.90% per annum. Early redemption occurs if the underlying asset price reaches 85% of the initial reference price on any evaluation date, returning 100% of principal.
The issuer, Kyobo Securities, maintains a credit rating of AA-, but these derivative bonds are not covered by the depositor protection act. Early redemption may result in principal loss. Proceeds will be used for hedging and financial investment.
On a consolidated basis for FY2025, Kyobo Securities reported total assets of approximately 19.27 trillion won, equity of 2.12 trillion won, and operating profit of 190.4 billion won. The internal accounting control system received an unqualified audit opinion.
[AI Summary]These equity-linked bonds from Kyobo Securities offer attractive coupon rates linked to blue-chip Korean stocks, but carry risks of coupon non-payment if the underlying assets decline, limited liquidity, and potential principal loss upon early redemption. The issuer's credit profile is solid, but the product's structure requires cautious investment. The overall impact on shareholder value is neutral.