Kyobo Securities ELS Tranche 13648 and 13649 Prospectus Effective, KRW 99.3 Billion Partial Principal Protection Notes, No Capital Change, Neutral Shareholder Value
Kyobo Securities made effective the prospectus for ELS Tranche 13648 and 13649 on July 16, 2026 as a supplemental filing to the existing shelf registration, issuing two ELS notes totaling KRW 99.3 billion in partial principal protection type.
Tranche 13648 is linked to SK Hynix common stock alone, while Tranche 13649 is linked to both Samsung Electronics and SK Hynix common stocks. The maximum loss is limited to 10%, with monthly coupon payments and automatic early redemption conditions fixed at 85% barrier.
This issuance does not involve new equity issuance, so there is no dilution of existing shareholders. The proceeds will be used for hedging of underlying assets and investment in financial products.
Kyobo Securities has an AA- credit rating from KIS and NICE, and reported consolidated net profit of KRW 139.3 billion in 2025, maintaining financial soundness.
These securities are not covered by deposit insurance and are unlisted, resulting in low liquidity. Early redemption may incur principal loss, and in case of issuer default, full loss of principal is possible.
[AI Summary]This ELS issuance is a routine funding and hedging activity with no capital change, hence neutral to shareholder value. The AA- credit rating provides credibility, but investors should be aware of principal loss risk and liquidity constraints.