NH Investment & Securities Launches First Subscription for "Individual Investor Treasury Bond for Retirement Pension"

Up to Approximately 59.28% Total Return Possible If 10-Year Bond Is Held to Maturity

NH Investment & Securities announced on September 8 that, starting from September 9, it will begin the first subscription for the "Individual Investor Treasury Bond for Retirement Pension," which can be purchased in Defined Contribution (DC) and Individual Retirement Pension (IRP) accounts.

The initial subscription will be available over five business days, from September 9 to September 15. Subscription hours are from 9:00 a.m. to 4:00 p.m. on business days. The minimum subscription amount is 100,000 won, and additional subscriptions can be made in increments of 100,000 won. The Individual Investor Treasury Bond for Retirement Pension is issued via a monthly subscription system, and subscriptions can be made at a branch, by phone, or through the MTS (N2 and NAMU) platforms.

The products available for this subscription are two bond types: 10-year and 20-year maturities. The 10-year bond carries a coupon rate of 4.415% per annum with a 0.350% point spread, while the 20-year bond offers an annual coupon rate of 4.570% with the same 0.350% point spread. If held to maturity, the combined coupon rate and spread are compounded annually, leading to a total pre-tax yield of approximately 59.28% for the 10-year bond and about 161.31% for the 20-year bond over their respective periods. This is equivalent to an annualized pre-tax return of about 5.92% and 8.06%, respectively.

Early redemption applications can be made from the 13th month, i.e., after one year from the bond issue date. However, in unavoidable circumstances such as retirement benefit payments or interim withdrawals under the Employee Retirement Benefit Security Act, early redemption is permitted within one year. In these cases, the spread and compounding benefits do not apply, and only simple interest based on the coupon rate will be paid.

Subscriptions will be fully allocated within the issue limit for each bond type. If subscriptions exceed the issue limit, each investor will be allocated up to a standard amount first, and then any remaining bonds will be allocated in proportion to the subscription amounts.

Jung Hwan, Head of the Retirement Asset Management Division at NH Investment & Securities, stated, "The Individual Investor Treasury Bond for Retirement Pension is a flagship long-term investment product that matches the long-term management characteristics of retirement pensions. We will continue to expand the range of products so that customers can manage their retirement assets in various ways tailored to their investment horizon and retirement timing, moving beyond strictly deposit-based stable management."

This content was produced with the assistance of AI translation services.