Yuanta Securities' Corporate Finance Team 2 sole-managed a KRW 1.26 trillion commercial paper (CP) issuance for Mirae Asset Securities in July, marking a rare mega-deal for a mid-tier investment banking team in the Korean stocks and securities market. The transaction occurred after SK Hynix, flush with cash from the HBM (High Bandwidth Memory) super-cycle, sought stable, quality bonds with appropriate interest rates through a reverse inquiry structure. Yuanta Securities connected Mirae Asset Securities as issuer with SK Hynix as investor, facilitating the purchase of the entire 2+ year maturity CP issuance via SK Hynix's securities-specific money trust account—a deal traditionally dominated by large securities firms in Korea's corporate finance sector.
Yuanta Securities Structures Reverse Inquiry Deal Between Mirae Asset and SK Hynix
Yuanta Securities' Corporate Finance Team 2 captured SK Hynix's demand signal for quality bonds with appropriate rates and stable maturities. The team structured a reverse inquiry transaction connecting Mirae Asset Securities as the CP issuer with SK Hynix as the sole investor. Mirae Asset Securities issued KRW 1.26 trillion in CP with a maturity of 2+ years, which SK Hynix purchased in full through a securities-specific money trust account. The reverse inquiry structure aligned the issuer's funding needs with the investor's capital deployment requirements.
Yuanta Earns KRW 1-1.2 Billion in Fees from KRW 1.26 Trillion CP Underwriting
Yuanta Securities' underwriting fee rate for the transaction stood at 0.05% (5 basis points) according to the securities registration statement. The underwriting fee on the KRW 1.26 trillion face value CP issuance reached approximately KRW 630 million. Including the lead management fee for structuring the transaction and overseeing administrative and legal procedures, Yuanta's total fee income from the deal ranged between KRW 1 billion and KRW 1.2 billion. This amount represents roughly half of Yuanta's total securities underwriting fee revenue for the previous year.
Industry Responds to Mid-Tier IB Landing Mega-Deal in Korean Securities Market
Industry observers noted the rarity of a mid-tier investment banking team earning KRW 1 billion-level fee income from a single sole-managed transaction. A large securities firm IB official stated that structuring and executing a KRW 1 trillion-plus transaction cleanly during a period of high credit market volatility demonstrated a perfect alignment of sales capability and planning expertise. The official added that the achievement would draw envy from other securities firms' IB teams. Market participants described the July deal as an early celebration of first-half performance results for Yuanta's Corporate Finance Team 2.
FAQ
What did Yuanta Securities do in July in the Korean stocks market?
Yuanta Securities' Corporate Finance Team 2 sole-managed a KRW 1.26 trillion commercial paper issuance for Mirae Asset Securities in July, with SK Hynix purchasing the entire amount.
How much did Yuanta Securities earn from the KRW 1.26 trillion CP deal?
Yuanta Securities earned an underwriting fee of approximately KRW 630 million at a 0.05% rate, with total fees including lead management estimated between KRW 1 billion and KRW 1.2 billion.
Why did SK Hynix purchase the entire KRW 1.26 trillion CP issuance?
SK Hynix, holding substantial cash from the HBM super-cycle, sought stable, quality bonds with appropriate interest rates and purchased the 2+ year maturity CP through a securities-specific money trust account via a reverse inquiry structure.
