Hanwha Investment & Securities Issues Additional 19.9 Billion KRW in ELBs Linked to KOSPI200 and Samsung Electronics, Proceeds for Hedging
Hanwha Investment & Securities filed a supplementary shelf registration on July 15, 2026 to issue two additional Equity-Linked Bonds ELBs totaling 19.9 billion KRW: Hanwha Smart ELB No. 1182 and No. 1183.
No. 1182 is linked to the KOSPI200 index and No. 1183 is linked to Samsung Electronics common stock, each with a offering amount of 9.95 billion KRW and an issue price of 9,950 KRW per security.
The ELBs have a 3-year maturity with an auto-call feature; every 6 months if the underlying asset price is at least 70% of the initial strike, early redemption occurs with yields of 6.00% to 7.00% per annum, and at maturity a similar condition yields principal plus return.
Proceeds will be used for hedging activities including trading in underlying assets and derivatives as well as investments in financial products to ensure stable repayment under the terms.
The issuer has a credit rating of AA- from NICE as of June 22, 2026. These bonds are not protected by the Depositor Protection Act and may incur principal loss.
[AI Summary]This ELB issuance is a routine capital management activity under the existing shelf registration with no equity dilution. Funds are allocated to defensive hedging rather than growth initiatives. Key risks include underlying asset price volatility and issuer creditworthiness, though the AA- rating provides some comfort.