Hanwha Investment Issues KRW 5 Billion Smart ELB No.1174 Linked to Samsung Electronics and SK Hynix with Principal Protection
Hanwha Investment & Securities filed a supplementary shelf registration statement on July 14 2026 to finalize the issuance of Hanwha Smart ELB No.1174 derivative-linked bonds.
The issuance totals KRW 5 billion with underlying assets being Samsung Electronics common stock and SK Hynix common stock and matures on July 27 2028.
This product features principal protection: if all underlying assets are at least 85% of their initial strike price on any autocall evaluation date the bond is redeemed at 100% of principal and it pays a monthly coupon of 0.75% pre-tax when conditions are met.
The issuer's credit rating is AA- and these ELBs are not covered by the Depositor Protection Act and are unlisted limiting liquidity.
The proceeds will be used for hedging transactions in underlying assets and derivatives.
[AI Summary]This ELB issuance by Hanwha Investment is merely a sale of derivative-linked securities not a capital increase so its direct impact on existing shareholder value is negligible. The KRW 5 billion size is about 0.5% of market cap and the principal-protected structure limits risk but the unlisted nature poses liquidity risk. The issuer's AA- credit rating is strong.