Hyundai Motor Securities 627th and 628th DLB Ordinary Risk KRW 15 Billion Prospectus Effective, Neutral Capital Raising for Shareholder Value
Hyundai Motor Securities announced on July 14, 2026 that the securities registration for the prospectus of the 627th and 628th Derivative Linked Bonds ordinary risk class became effective.
The 627th issue is a 92-day USD 4.995 million digital note linked to the 3-month Treasury bond rate, offering pre-tax returns of 3.700% or 3.710% per annum. The 628th issue is a 184-day USD 4.99 million note with similar structure offering 3.900% or 3.910% per annum.
Proceeds will be used for hedging underlying assets and investing in financial products, with no equity issuance causing no dilution for existing shareholders. The total issuance size of approximately KRW 15 billion represents about 3.0% of market cap, limiting the impact on financial soundness.
The issuer Hyundai Motor Securities maintains a strong credit rating of AA- from NICE, Korea Ratings, and KIS. Outstanding DLB balance stands at KRW 432.5 billion with credit equivalent amount of KRW 694.1 billion.
No separate shareholder return policies such as treasury stock acquisition, cancellation, or dividends were included in this filing.
[AI Summary]This DLB registration is a routine funding and hedging activity with no share dilution, neutral for shareholder value. The AA- credit rating and ordinary risk class indicate low credit risk, but investors should note the risks of illiquidity and potential principal loss upon early redemption.