NH Investment & Securities Files Supplementary Documents for ELS Series 361-370, High-Risk Products with Potential Full Principal Loss
NH Investment & Securities has filed supplementary registration documents for the issuance of 10 equity-linked securities series N2 ELS 361 through 370.
These products are classified as high-difficulty financial investment instruments with no principal protection, not covered by the Depositor Protection Act, and may result in up to 100% loss of principal depending on underlying asset price movements.
The ELS are not listed on any exchange, making early redemption difficult, and early redemption conditions are limited to at least 95% of fair value after six months and 90% before that.
The issuer NH Investment & Securities maintains an AA+ credit rating but faces significant litigation risks including DLS and Optimus lawsuits totaling approximately 287.7 billion KRW, with maximum credit risk exposure of 74.5 trillion KRW.
The company reported net income of 908.3 billion KRW in 2025, paid dividends of 1,300 KRW per common share and 1,350 KRW per preferred share, executed a share cancellation of 48.7 billion KRW, while also conducting a capital increase of 649.1 billion KRW.
[AI Summary]NH Investment & Securities' ELS issuance transfers full principal risk to investors as high-difficulty products. While the issuer's credit is strong, substantial litigation risks and high leverage pose potential concerns. No direct dilution but increased operational risk and financial strain expect a neutral impact on shareholder value.
KOSPI Filing Information
Additional Documents for Shelf Registration (Derivative-Linked Securities - Equity-Linked Securities)