Limit exhausted within 10 business days

Early redemption at contracted yield draws positive response

[Provided by Shinhan Securities]
[Provided by Shinhan Securities]

Shinhan Securities said Wednesday that a special repurchase agreement product exclusively for customers of its Shinhan Premier brokerage ISA has sold out for the third consecutive time since its Sept. 1 launch.

The product was designed for Shinhan Premier brokerage ISA customers. Following the first offering in May and the second in July, the third round in September brought total sales to 30 billion won ($22.3 million), with each 10 billion won tranche selling out within 10 business days of launch.

The product is a 91-day term repurchase agreement offering a pre-tax annual yield of 3.65 percent. The contracted yield applies even upon early redemption, and the maximum purchase limit per customer is 20 million won.

The company attributed the strong demand to a growing appetite for stable returns amid rising interest rate volatility and heightened attention to tax-saving products. It said the yield terms and the guarantee of the contracted rate upon early redemption were key factors in customers' decisions.

The ability to manage a range of financial products within a single tax-advantaged account while also accessing repurchase agreement investment opportunities also drew a positive response, the company said.

"All three special repurchase agreement offerings sold out within 10 business days, which showed us just how much interest and support our customers have shown," a Shinhan Securities official said. "We plan to continue introducing a variety of investment products and services that deliver real benefits to Shinhan Premier brokerage ISA customers."


yuni@heraldcorp.com