Samsung Securities to launch second issuance-note tranche on Oct 12 at 4.3%
In short
Samsung Securities said it will begin selling a second special tranche of issuance notes from Oct 12, a one-year product at 4.3% a year before tax with a 100 billion won limit. The first tranche, launched Sept 21, sold out in two and a half days. The brokerage also launches a CMA-type issuance note and an event with vouchers, coffee coupons and Samsung Electronics shares through the end of October.
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Samsung Securities said it will begin selling a second special tranche of issuance notes from Oct 12, offering a one-year product at 4.3% a year before tax with a limit of 100 billion won, according to Yonhap, Asia Economy and Newsis. The tranche is available to customers holding the firm's comprehensive (01) account, with a per-person limit of 1 million to 300 million won, and it closes early if the 100 billion won issuance limit is exhausted. [ 2 , 3 , 4 ]
Issuance notes are short-term products with maturities of one year or less that can only be issued by securities firms designated as ultra-large investment banks, meaning those with capital of 4 trillion won or more, the reports said. The first tranche, launched on Sept 21, was a 100 billion won one-year product at 4.3% and sold out in two and a half days. [ 2 , 3 ]
Alongside the special tranche, the brokerage is newly launching a CMA-type issuance note, which automatically buys and sells the notes when a customer deposits or withdraws funds. Outside the special sale, general issuance notes are offered at 4.6% a year for the savings type, 2.55% for the CMA and demand-deposit type, and between 2.65% and 3.95% depending on tenor, the reports said. [ 2 , 3 ]
A Samsung Securities official said, according to Asia Economy: “With this issuance-note launch, customers now have one more stable asset-management tool that is not shaken by market conditions,” adding that the company hopes it will be of practical help to customers' stable asset management. [ 2 ]
A reward event tied to the launch runs through the end of October. Customers must buy at least 1 million won in issuance notes. Among those with an end-August balance of 1 million won or more and under 300 million won, 300 will be drawn by lottery to receive 50,000 won gas vouchers if their end-October balance reaches 300 million won or more; among those with an end-August balance of 300 million won or more and under 1 billion won, 30 will be drawn to receive one Samsung Electronics share if their end-October balance reaches 1 billion won or more. Coffee coupons go to all customers who meet the conditions, the reports said. [ 2 , 3 ]
Why it matters
The offer gives savers a fixed-rate short-term product at a time when the brokerage says it wants to provide a stable asset-management tool. Issuance notes can only be sold by securities firms designated as ultra-large investment banks, so the lineup is limited to a small group of large brokerages. Strong demand for the first tranche, which sold out in two and a half days, is the main evidence in the documents that the product is drawing interest.
Key facts
- Samsung Securities will start selling its second issuance-note special tranche on Oct 12. [ 2 , 3 , 4 ]
- The tranche offers a one-year product at 4.3% a year before tax, with a 100 billion won limit. [ 2 , 3 , 4 ]
- It is available to holders of the firm's comprehensive (01) account at 1 million to 300 million won per person, and closes early if the limit is exhausted. [ 2 , 3 ]
- The first tranche, launched Sept 21, was a 100 billion won one-year product at 4.3% and sold out in two and a half days. [ 2 , 3 ]
- Only securities firms designated as ultra-large investment banks, with capital of 4 trillion won or more, may issue the notes, which have maturities of one year or less. [ 2 , 3 ]
- Samsung Securities is also launching a CMA-type issuance note with automatic buying and selling when customers deposit or withdraw funds. [ 2 , 3 ]
- A reward event runs through the end of October, offering gas vouchers, Samsung Electronics shares and coffee coupons for customers who buy at least 1 million won and reach balance thresholds. [ 2 , 3 ]
Confirmed by several sources
- A second issuance-note special tranche will be sold from Oct 12: a one-year product at 4.3% a year before tax with a 100 billion won limit. [ 2 , 3 , 4 ]
- The first 100 billion won one-year tranche at 4.3% sold out in two and a half days after its Sept 21 launch. [ 2 , 3 ]
- A CMA-type issuance note is being newly launched. [ 2 , 3 ]
- The per-person limit for the second tranche is 1 million to 300 million won, and it closes early once the limit is exhausted. [ 2 , 3 ]
- Issuance notes may only be issued by securities firms designated as ultra-large investment banks with capital of 4 trillion won or more, with maturities of one year or less. [ 2 , 3 ]
Still unclear
- Whether the second tranche will also sell out early. The documents say only that sales close early if the 100 billion won limit is used up; no result is given.
- Details on the special sale beyond the headline in some reports. One report's headline describes the special sale while its article text covers unrelated inclusive-finance topics at other banks, and another's article text covers a rocket launch, so only their headlines could be used.
What local media are saying
Timeline, local time
- Samsung Securities launches the first 100 billion won one-year issuance-note tranche at 4.3%. [ 3 ]
- Korea Economic Daily publishes a report describing the issuance-note special sale as a success and citing various rates. [ 1 ]
- Asia Economy reports the second special tranche will be sold from Oct 12 at 4.3% and details the CMA-type product, other rates and the reward event. [ 2 ]
- Yonhap reports the same launch and the background on which firms may issue the notes. [ 3 ]
- Newsis publishes a report stating the second 4.3% one-year tranche will be launched on Oct 12. [ 4 ]