Mirae Asset Securities noted on the 18th that a total of 156.1 billion won was raised from the subscription for Government Bonds for individual investors conducted in March, exceeding the issuance plan by 130%. The initial issuance plan was 120 billion won. The introduction of a new 5-year bond seems to have driven the popularity.
According to Mirae Asset Securities, 156.1 billion won was raised during the subscription for Government Bonds for individual investors held from the 11th to the 17th. This is a 130% exceedance of the total issuance plan of 120 billion won, marking the first over-subscription in eight months since last July. The subscription amount increased by 105.6 billion won compared to last month.
In particular, the newly launched 5-year bond saw an over-subscription with 115.1 billion won collected against a target of 60 billion won. Given the strong demand for the 5-year bond, Mirae Asset Securities plans to allocate 79 billion won, which is more than the original issuance plan, and will refund the excess amount of 36.1 billion won.
In contrast, the 10-year bond with a target of 50 billion won raised 35.3 billion won, while the 20-year bond with a target of 10 billion won raised 5.7 billion won.
The total number of subscriptions was 8,444, increasing by 2,516 compared to the previous month. Specifically, there were 3,679 subscriptions for the 5-year bond, 3,232 for the 10-year bond, and 1,533 for the 20-year bond.
The applicable interest rates for holding to maturity are approximately 16.11% (annual average 3.22%) for the 5-year bond, approximately 36.87% (annual average 3.68%) for the 10-year bond, and approximately 87.86% (annual average about 4.39%) for the 20-year bond.