Kiwoom raises $3.41M via KOSPI200-linked bond, hitting under half its target
What's the deal? Kiwoom SecuritiesDealroom has a profile for this one. Try Dealroom → raised US$3.9M through its 1,406th equity-linked bond, a KOSPI200-linked, unlisted structured product issued on November 9. The amount came from a single subscription and covered just 46.61% of the planned US$8.36M, with the shortfall handled under partial-payment rules.
What's the endgame? Kiwoom is a Korean securities firm selling capital-markets products and investment services. Proceeds will support hedging transactions and sit under internal controls; the bond pays an annualised 5.85% monthly when conditions are met, with principal repayment at maturity or early redemption.
What could go wrong? Returns hinge on product conditions and on Kiwoom's ability to pay — the bond is not depositor-protected. The modest take-up echoes another recent KOSPI200-linked offering that raised US$11.9M but also fell short of its target, pointing to uneven demand for the firm's retail structured products.
Why now? Kiwoom has issued a steady stream of equity-linked bonds through shelf registrations in recent weeks. The firm is also under earnings pressure: it posted a US$200.4M bond valuation loss in the first half of the year — the largest among nine major Korean securities firms — as rising yields dragged on bond holdings.
The signal: This is a small product-placement update, not a shift in Kiwoom's funding position — the firm's market cap sits near US$3.96B. But the repeated under-subscription of its KOSPI200-linked notes suggests retail appetite for structured products is cooling just as higher rates squeeze brokerage balance sheets.
Read more: tipranks.com
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