New Deal Fund Sweeps Banking Sector... Kookmin Bank Also 'Sold Out'
Sold Out in Just 2 Hours and 30 Minutes
[Asia Economy Reporter Park Sun-mi] Kookmin Bank, which was the last among banks to start selling the 국민참여정책형 New Deal Fund, announced a 'sold out' news immediately after starting sales on the 1st.
On the 1st, Kookmin Bank stated that all the prepared quantities were sold out within 2 hours and 30 minutes of selling the New Deal Fund. Initially, the bank set the minimum subscription amount for the fund at 30 million KRW and planned to sell a total of 22.6 billion KRW worth.
The banks selling the New Deal Fund include seven institutions: Kookmin Bank, IBK Industrial Bank, KDB Industrial Bank, NH Nonghyup Bank, Shinhan Bank, Woori Bank, and Hana Bank. Kookmin Bank started selling the New Deal Fund the latest among banks, as the KB Asset Management fund was launched on April 1st.
A Kookmin Bank official said, "The quantity itself was not large compared to the number of branches, so it was quickly sold out," and added, "Many customers were aware of the New Deal Fund due to the late start of sales among banks."
The New Deal Fund is a private placement fund mainly investing in equity and mezzanine securities issued by companies in the New Deal sector.
It invests in the beneficiary certificates of 10 sub-funds operated as private funds. It is set as a 4-year closed-end structure, so early redemption is not possible, but general investors participating in the senior tranche do not incur losses until the fund's net asset value falls by 21.5%. Even if the fund halves, the loss rate is limited to 36.3%. On the other hand, in the range where the yield exceeds 20%, excess profits are divided between senior and junior investors in a 4 to 6 ratio.
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The sellers include seven banks and eight securities firms: IBK Investment & Securities, KB Securities, Shinhan Financial Investment, Yuanta Securities, Hana Financial Investment, Korea Investment & Securities, Hanwha Investment & Securities, and POS Securities. The continuous 'sold out' news from banks and securities firms shows a hot response.
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