Kyobo Securities Decides to Issue 6 Billion Won High-Risk ELS Linked to Samsung and SK Hynix, No Capital Change Thus No Dilution for Existing Shareholders
Kyobo Securities decided to issue the 21st and 22nd series of equity-linked derivative securities totaling 6 billion won with 3 billion won each, underlying assets being Samsung Electronics and SK Hynix common stocks
These securities are high-risk complex financial products with maximum loss rate of 100%, but the issuer Kyobo Securities has a credit rating of AA- ensuring reliable issuance
This issuance does not involve new share issuance so there is no dilution for existing shareholders; proceeds will be used for hedging and investment in financial instruments
Kyobo Securities posted consolidated net income of 139.3 billion won and total equity of 2.1207 trillion won with capital adequacy ratio exceeding regulatory requirements, indicating stable financial health
[AI Summary]This 6 billion won ELS issuance by Kyobo Securities is a routine funding and hedging activity with no capital change, thus neutral to shareholder value, with AA- credit rating the counterparty risk is low, but investors should be aware of potential total loss of principal and liquidity risk due to unlisted nature
KOSPI Filing Information
Additional Documents for Shelf Registration (Derivative-Linked Securities - Equity-Linked Securities)