Kyobo Securities Issues KRW 200bn in KOSPI200-Linked ELBs with 3-Year Non-Principal Protected Structure Limited to Pension Funds
Kyobo Securities filed a supplemental registration statement on July 16, 2026 to issue its 50273rd and 50274th equity-linked derivative bonds totaling KRW 200 billion with each series amounting to KRW 100 billion.
The securities are linked to the KOSPI200 index with a maturity of August 2, 2029 approximately 3 years at an issue price of KRW 10,000 and are unlisted non-principal protected instruments. The automatic early redemption barrier is set at 100% of the initial reference price with the 50273 series offering step-up coupons from 3.85% to 25.60% and the 50274 series offering an annual 9.50% coupon up to 28.50% with a floor of 0.50%.
Subscription is limited to retirement pension reserves under the Employee Retirement Benefit Security Act with the subscription date on July 31, 2026. Proceeds will be used for hedging transactions including underlying asset trading and over-the-counter derivative transactions.
The issuer maintains an AA- credit rating from Korea Ratings and NICE Ratings reflecting stable financial health. Kyobo Securities reported equity of KRW 2.12 trillion and net profit of KRW 142.9 billion for fiscal year 2025 on a consolidated basis.
[AI Summary]This ELB issuance of KRW 200 billion is a debt financing with no shareholder dilution and neutral capital allocation as proceeds are used for standard hedging. Kyobo Securities AA- rating and robust financials support creditworthiness while investors face market-linked returns dependent on KOSPI200 performance.