This supplementary shelf filing finalizes the terms for Hanwha Smart ELB Series 1175, a principal-protected equity-linked bond issued by Hanwha Investment & Securities under the shelf registration effective May 14, 2026. The offering totals 10 billion won with 1 million bonds at 10,000 won face value each.
The underlying asset is the KOSPI200 index. A monthly coupon of 0.6525% pre-tax is paid if the index closes at or above 70% of the initial strike on monthly observation dates. The bond features 11 automatic early redemption opportunities with a 75% barrier, and at maturity, 100% of principal is guaranteed even if the index is below 75%.
The unsecured bond relies on the issuer's creditworthiness; as of the filing date, the credit rating is AA- from NICE. Proceeds from the issuance will be used for hedging activities including underlying asset and derivatives transactions.
[AI Summary]This principal-protected ELB leverages Hanwha's solid AA- credit rating, offering monthly income linked to KOSPI200 with a 75% barrier and full principal protection at maturity. The small 10 billion won issuance has negligible market impact, but investors should note the lack of deposit insurance and potential losses upon early redemption.