Kyobo Securities Offers Monthly-Payout ELB Tied to SK hynix at 5.70%

Kyobo Securities (030610) is offering a principal-protected, monthly-payout equity-linked bond (ELB) tied to SK hynix (000660) common shares.

The brokerage said on the 3rd that it will accept subscriptions for its 456th ELB issue through the 11th. If SK hynix shares stay at or above 50% of the initial reference price on each monthly valuation date, the product pays 0.475% a month before taxes, or 5.70% a year. No payout is made for any month in which the share price falls below 50% of the initial reference price.

The product has a three-year maturity with a principal-protected, monthly-payout structure. Automatic early redemption opportunities come every six months. If the underlying asset trades at or above 100% of the initial reference price on a semiannual early redemption valuation date, the principal is returned and the product is redeemed early. Even if the share price falls below 100% on the maturity valuation date, the full principal is paid. Investors who request early termination, however, may incur a loss of principal.

The minimum subscription amount is 1 million won, with applications accepted in increments of 100,000 won. Investors can subscribe through the Kyobo Securities website or its mobile trading system, Win.K. Kyobo Securities carries a credit rating of AA- with a stable outlook from Korea Ratings.