Mirae Asset Securities said on the 11th it will take March subscriptions for Government Bonds for individual investors. The total issuance is 180 billion won, up 10 billion won from the previous month. By tranche, the 5-year is 60 billion won (unchanged from the previous month), the 10-year is 90 billion won (up 10 billion won from the previous month), and the 20-year is 30 billion won (unchanged from the previous month).
The additional spread for the March issues is △ 5-year 0.2% △ 10-year 1.0% △ 20-year 1.28%. If held to maturity, the pre-tax yields are △ 5-year 19.27% (annual average 3.85%) △ 10-year 58.39% (annual average 5.83%) △ 20-year 158.22% (annual average 7.91%).
According to Mirae Asset Securities, in Jan.–Feb., all 5-year, 10-year, and 20-year tranches were oversubscribed. For the February subscription amounts, the 5-year raised 60 billion won and drew about 114.9 billion won (competition ratio 1.91:1), the 10-year raised 80 billion won and drew about 220 billion won (2.75:1), and the 20-year raised 30 billion won and drew about 66.7 billion won (2.22:1).
Mirae Asset Securities analyzed that multiple factors worked together, including improved appeal through reforms to the Government Bonds program for individual investors, rising demand for safe assets, and wider additional spreads on long maturities of 10 years or more.
Government Bonds for individual investors are savings-type government bonds issued by the government for individual investors and are characterized by high stability as they are issued by the state. If held to maturity, interest is paid on a compound basis by adding the coupon rate and the additional spread, and for purchase amounts up to 200 million won, the benefit of separate taxation on interest income applies.
Investments start from 100,000 won, and there is no trading commission. Early redemption is allowed starting one year after issuance (in the 13th month), but in that case only coupon interest is paid and the compound interest and separate taxation benefits do not apply.
This subscription runs for five business days from this day through the 17th, excluding holidays. Applications can be submitted from 9 a.m. to 4 p.m. through Mirae Asset Securities branches nationwide and the mobile trading system (MTS).