[Digital Today reporter Sangyeop Oh] Hana Securities said on Jan. 16 that both the on-demand and fixed-term versions of its first “Hana THE structured notes,” issued on Jan. 9, sold out. Hana Securities introduced its first product on Jan. 9, less than a month after receiving approval for its structured notes business in December.

“Hana THE structured notes” are notes issued directly by Hana Securities with maturities of less than 1 year. They pay principal and interest according to an agreed yield.

For the on-demand version, an annual pretax interest rate of 2.4 percent applies for individual customers. A special fixed-term product for individual customers who are net new customers and for those who have not traded for at least 6 months applies annual interest rates of 3.4 percent to 3.6 percent depending on the agreed term.

Hana Securities plans to expand productive finance by investing funds raised through these structured notes in venture capital.

It plans to support small and medium-sized companies mainly through equity investment. It will provide financial support to mid-sized companies through various methods, including corporate bond underwriting and credit support. Hana Securities plans to expand structured notes issuance to more than 2 trillion won a year.

Kim Dongsik, head of Hana Securities’ Structured Finance Division, explained, “Through structured notes, we plan to provide competitive returns versus market rates and a fixed-rate structure, while actively expanding productive finance by supplying venture capital to companies at a growth stage.”