Hanwha Investment & Securities Launches 10 Billion Won Principal-Protected ELB Linked to KOSPI200 with 7.83% Annual Coupon
Hanwha Investment & Securities announced the public offering of Hanwha Smart ELB No. 1175, a derivative-linked bond, valued at 10 billion won, with the registration statement effective on July 15, 2026.
The underlying asset is the KOSPI200 Index. On each monthly evaluation date, if the index is at or above 70% of the initial strike price, investors receive a monthly coupon of 0.6525% or 7.83% per annum.
Auto-call evaluations occur every three months at a 75% barrier; if met, principal is repaid early. If not called by maturity, the bond guarantees 100% principal regardless of the index performance, with potential additional coupons if conditions are met.
Proceeds will be used for hedging and investment in financial products.
The issuer's credit rating is AA- from NICE. The bond is not protected by the depositor protection act.
[AI Summary]This ELB issuance by Hanwha Investment & Securities is a debt financing without equity dilution, leaving shareholder value unaffected. The principal-protected structure limits investor risk, but counterparty credit risk and illiquidity due to non-listing are key considerations.