Shinhan Investment Corp. Launches Mobile Special Sale of Dollar-Denominated Korea National Oil Corporation Bonds

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Shinhan Investment Corp. announced on the 11th that it will sell U.S. dollar (USD) denominated Korea National Oil Corporation bonds (with approximately 1 year and 6 months remaining maturity) through Shinhan SOL Securities.

The special sale bonds are those issued by Korea National Oil Corporation in dollars in October 2020, with maturity scheduled for October 5, 2025. These bonds have a coupon rate of 0.875% per annum before tax and pay interest twice a year. Since the coupon rate is lower than the purchase rate, customers can buy the bonds at a price below face value, thereby enjoying tax-saving benefits.

Considering the public nature and importance of Korea National Oil Corporation in stabilizing domestic oil supply and demand, the government explicitly guarantees the corporate bonds issued by Korea National Oil Corporation. The credit rating of Korea National Oil Corporation is the same as the sovereign credit rating of the Republic of Korea (Aa2 by Moody’s as of September 21, 2020, and AA by S&P as of September 21, 2020).

The USD-denominated bonds can be invested in using held dollars or by converting Korean won into dollars. Interest is paid in dollars every six months, and the principal is repaid in dollars at maturity.

Since last year, Shinhan Investment Corp. has been selecting USD-denominated bonds with international credit ratings of A or higher every month and offering them as special mobile sale products. To enhance customer convenience, U.S. Treasury bonds can be invested in with a minimum face value of 100 dollars, and USD-denominated bonds issued by Korean public enterprises can be invested in with a minimum face value of 1,000 dollars.

The bonds sold are not protected under the Depositor Protection Act and may incur principal losses due to exchange rate fluctuations and credit risks. Information on overseas bonds sold by Shinhan Investment Corp. is provided through Shinhan SOL Securities and branch offices, and non-face-to-face customers can receive investment consultations through digital PB.

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