After 6 months… The second issued note to NH Investment and Securities
Kim Min Soo | minsu@ | 2018-05-24 10:31:54

NH Investment & Securities is the second largest investment bank in the world. As a result, with the Korea Investment & Securities Co., Ltd., which was approved in November of last year, the ultra-large IB market will form a so called "top-up" system.

The Securities and Futures Commission of the Financial Services Commission on May 23 held a meeting and deliberated and voted on the approval of NHIS Securities` issuance bill business. NH Investment & Securities will be able to start the issuance bill business when the agenda is finalized at the regular meeting of the Financial Services Commission held on May 30. The company is likely to issue issuance notes as early as next month.

It was only six months after the Financial Supervisory Service (FSC) last November issued the issuance note to Korea Investment & Securities.

NH Investment & Securities has been the leading provider of issuance notes following Korea Investment & Securities. However, the issue of licensing privileges of K bank, an Internet bank that is a shareholder participating in the company, and the allegations of misappropriation by the major shareholder have come to the fore as a problem.

Meanwhile, issuable notes issue securities within 200% of equity capital within maturity of one year, and brokerage firms can directly raise funds from general investors.

NH Investment & Securities`s equity capital is KRW 4.78 trillion as of the end of March, which can be funded up to about KRW 9.6 trillion, twice the size of the corresponding amount. NH Investment & Securities plans to raise KRW 1.5 trillion worth of bonds by issuing notes.

NH Investment & Securities anticipates that it will be able to launch issuance products by the end of next month and at the latest by early July, if it passes the Financial Stability Regulation Meeting, Currently, Korea Investment & Securities has a one-year interest rate of 2.30% per annum, which is 0.05% higher than that of K bank (2.25%).

NH Investment & Securities pointed out, "This year we plan to issue KRW 1,500 billion and we plan to determine the amount of additional sales by looking at the future situation. We are still watching the final decision procedure.”

By Kim Min Soo minsu@

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