Kyobo Securities to Offer Monthly-Pay ELB Linked to SK hynix

[Financial News] Kyobo Securities is introducing an equity-linked bond (ELB) that pays returns each month when conditions are met, based on the share price of SK hynix.
Kyobo Securities announced on the 3rd that it will offer ELB No. 456, based on common shares of SK hynix, through the 11th.
The product is a three-year, principal-protected monthly-pay ELB. If SK hynix’s monthly return assessment price is at least 50% of the initial reference price on each monthly return assessment date, it will pay a return of 0.475% per month before tax, or 5.70% annually. If the price falls below 50%, no return will be paid for that month.
Investors will also have an opportunity for early redemption every six months. If the underlying asset price is at least 100% of the initial reference price on an automatic early redemption assessment date, the principal will be paid and the product will be redeemed early.
The principal will be paid even if the underlying asset price falls below 100% of the initial reference price on the maturity assessment date. However, requesting redemption before maturity may result in a loss of principal.
The minimum subscription amount is 1 million won, and investors can subscribe in increments of 100,000 won. Further details are available on the Kyobo Securities website and its mobile trading system (MTS), Win.K.
ELBs are not covered by deposit insurance, and contracted returns may not be paid depending on fluctuations in the underlying asset price. Investors must also consider the issuer’s credit risk. Kyobo Securities has a credit rating of “AA-” according to Korea Ratings.


[email protected] Bae Han-geul Reporter