Hyundai Motor Securities Confirms Issuance of 617th and 618th DLBs, Raising a Total of 16.7 Billion Won for Hedging Purposes
Hyundai Motor Securities reported the issuance results for the 617th and 618th series of other derivative-linked bonds DLBs on July 10, 2026. The 617th series received subscriptions of 2.85 billion won out of a total offering of 14.99 billion won, a subscription rate of 19.02%; the 618th series received 13.89 billion won out of 14.99 billion won, a rate of 92.67%.
Both series are low-risk DLBs with USD/KRW exchange rate as the underlying asset, structured as principal-protected with repayment at least at par at maturity. The funds raised will be used for hedging transactions in underlying assets and derivatives, and investments in financial products.
These bonds are unlisted and not covered by the Depositor Protection Act. The issuer's credit rating is AA- from major agencies. No separate shareholder return policies such as share buybacks or dividends were disclosed. The outstanding balance of derivative-linked bonds is 432.5 billion won, and the credit equivalent amount is 694.1 billion won.
[AI Summary]This issuance report confirms routine debt financing and hedging activities with no equity dilution. Subscription rates varied by series but were generally adequate. The defensive use of proceeds for hedging means limited impact on shareholder value. The AA- credit rating and low-risk classification indicate low credit risk, but investors should note the unlisted nature and potential principal loss upon early redemption.