Kyobo Securities ELS Series 23 and 24 Prospectus Effective: 6 Billion Won Partial Principal Protection ELS Issuance, No Capital Change, Neutral Impact on Shareholder Value
Kyobo Securities made the prospectus effective for K-ELS Series 23 and 24 on July 16, 2026, issuing a total of 60 billion won in two tranches of 30 billion won each.
Series 23 is linked to Samsung Electronics and SK Hynix with a 3-year maturity, monthly coupon of 15.90% per annum, and a maximum loss of 20% due to its principal-protected partial structure. Series 24 is linked solely to Samsung Electronics with a 1-year maturity and an autocall structure, also with a maximum loss of 20%.
This issuance does not involve new share issuance, so there is no dilution for existing shareholders. The proceeds will be used for underlying asset hedging and investment in financial instruments.
Kyobo Securities maintains an AA- credit rating from Korea Investors Service and NICE, reflecting stable financial health. For 2025, consolidated net income was 139.3 billion won, and a dividend of 550 won per share was paid.
There are no separate treasury stock purchases or changes in dividend policy.
[AI Summary]Kyobo Securities' 60 billion won ELS issuance is a routine funding and hedging activity with no capital change, making its impact on shareholder value neutral. The issuance size is minimal at less than 0.06% of market cap, and the AA- credit rating supports credibility. Investors should note the potential maximum loss of 20% due to the partial principal protection structure and liquidity risk from being unlisted.