NH Investment & Securities Issues 10 Billion Won in 3-Year ELS Linked to Samsung Electronics and SK Hynix, Minimal Impact on Existing Shareholders
NH Investment & Securities filed a supplementary registration statement on July 20, 2026 for the issuance of N2 Retirement Pension ELS Series 75 and 76, a total of 10 billion won in equity-linked securities.
The underlying assets are Samsung Electronics common stock and SK Hynix common stock with a maturity date of July 31, 2029. The subscription period runs from July 21 to July 30, 2026.
Series 75 ELS is a step-down structure with an autocall barrier of 65%, and if maturity conditions are not met, investors may lose 1% of principal. Series 76 ELS offers higher potential returns but carries a knock-in barrier of 35%, with a maximum principal loss of 20%.
NH Investment & Securities reported separate net income of 908.3 billion won for 2025 and paid a dividend of 1,300 won per common share, representing a dividend yield of 6.13%. The company maintains a strong credit rating of AA+.
Proceeds from this ELS issuance will be used for hedging activities. As the issuance size is negligible relative to the market cap, there is no dilution risk for existing shareholders. However, investors should be aware of the volatility of underlying assets and the credit risk of the issuer.
These securities are not protected by the Depositor Protection Act and are not listed on an exchange, limiting liquidity. Early redemption by the issuer at 95% or more of fair value may result in principal loss.
[AI Summary]This ELS issuance by NH Investment & Securities involves a small amount of funding with limited adverse impact on existing shareholders. However, as a product targeting retirement pension investors with potential principal loss, risk-averse investors should proceed with caution. The firm's financial position is sound, but the structural risks of ELS and market volatility warrant careful consideration.
KOSPI Filing Information
Additional Documents for Shelf Registration (Derivative-Linked Securities - Equity-Linked Securities)