Hyundai Motor Securities to Issue 15 Billion KRW Series 1607 ELB, KEPCO-Linked Principal-Guaranteed with Annual 3.91% Return
Hyundai Motor Securities filed a supplementary shelf registration on July 21, 2026 to finalize the issuance of the 1607th series Equity-Linked Bond ELB. This is an additional issuance under the shelf registration effective from February 7, 2026, as part of regular funding activities within the planned issuance period.
The security totals 15 billion KRW, linked to KEPCO common stock, with a one-year maturity and a pre-tax annual return of 3.91%. It is not protected by the depositor protection act but is classified as a low-risk principal-guaranteed product.
Hyundai Motor Securities holds a stable AA- credit rating. As of Q1 2026, the consolidated net capital ratio stood at 564.55%, well above the regulatory threshold of 100%, indicating strong financial health. Standalone net profit for the same period was 25.2 billion KRW.
Regarding shareholder returns, the company paid a dividend of 370 won per common share for the fiscal year 2025, totaling 22.8 billion KRW, an increase from the prior year.
[AI Summary]This ELB issuance under the shelf registration is a routine funding activity involving no equity dilution. The offering size is negligible relative to market capitalization, and the proceeds will be used for hedging and stable investments, limiting any negative impact on shareholder value.