Kyobo Securities Files Additional Registration for 3 Billion Won Series 443 Equity-Linked Bond, Principal-Protected Low-Risk Product
Kyobo Securities has filed an additional shelf registration statement to issue the 443rd series of equity-linked bonds low-risk grade 5 totaling 3 billion won within the existing shelf registration period.
The product is linked to the KOSPI200 index offering a monthly coupon of 0.50% equivalent to 6.00% per annum when conditions are met with full principal protection at maturity and automatic early redemption features over a 3-year term.
The issuer Kyobo Securities holds a AA- credit rating reflecting strong financial health and this issuance is a debt instrument causing no dilution to existing shareholders with proceeds planned for hedging and investment activities.
[AI Summary]This 3 billion won ELB issuance by Kyobo Securities involves no shareholder dilution and benefits from the issuer's AA- credit rating ensuring high safety. However as an unlisted product liquidity is limited and early redemption may incur principal loss thus requiring a hold-to-maturity investment approach.