Hanacard Successfully Issues First Overseas ABS... $300 Million Scale

Jointly Hosted with MUFG Bank and HSBC Bank
Successful Issuance of First ABS Worth 347.7 Billion KRW with an Average Maturity of 3 Years

[Asia Economy Reporter Ki Ha-young] Hana Card issued overseas asset-backed securities (ABS) without payment guarantees from overseas guarantee insurance companies or banks. This is Hana Card's first overseas borrowing.

Hana Card announced on the 10th that it successfully issued ABS worth $300 million (347.7 billion KRW) under the joint sponsorship of MUFG (Mitsubishi UFJ Financial Group) Bank and HSBC Bank.

The issuance terms include an average maturity of 3 years and received an 'AAA' rating from the international credit rating agency Fitch without payment guarantees from overseas guarantee insurance companies or banks. Currency and interest rate swaps were used to eliminate risk factors arising from exchange rate and interest rate fluctuations, and the raised funds are planned to be used for repaying existing borrowings and operating funds. This ABS was issued based on credit card receivables as underlying assets, securing long-term low-interest funds and reducing financial costs.

A Hana Card official said, "Through this issuance, we enhanced our credibility in the overseas issuance market by obtaining the highest rating from a leading international credit rating agency without payment guarantees from guarantee insurance companies and banks," adding, "It served as an opportunity to break away from the won-denominated corporate bond-centered funding method and pursue securing diverse funding sources and financial stability."

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