Shinhan Financial Group, 1.2 Trillion Won Capital Increase... PEF Investor Recruitment

Shinhan Financial Group Secures Investment from Global PEFs to Expand Capital
Decision Made at Board Meeting on the Afternoon of the 4th
This Is the First Time a Global PEF Has Been Invited as a Strategic Investor.

Shinhan Financial Group is attracting a total investment of 1.2 trillion KRW from global private equity funds (PEFs) Affinity Equity Partners and Baring Private Equity Asia. This is the first time Shinhan Financial has brought in global PEFs as strategic investors.

According to the financial sector on the 4th, Shinhan Financial plans to hold a board meeting on the same day to discuss a third-party allotment capital increase worth 1.2 trillion KRW. Affinity Equity Partners (Affinity) and Baring Private Equity Asia (Baring PEA) are expected to participate in the investment by acquiring common shares issued through the capital increase, each investing around 600 billion KRW.

A Shinhan Financial official said, "We will hold a board meeting today to finalize the details," adding, "If the investment attraction is finalized, we will disclose it after the market closes."

Upon completion of the capital increase, they will secure a stake in Shinhan Financial slightly below 4%. Currently, the largest shareholder of Shinhan Financial is the National Pension Service (9.92%). Other shareholders include financial investors such as BlackRock (6.13%), the employee stock ownership association (5.11%), BNP Paribas (3.55%), Citibank (2.8%), and the Government of Singapore Investment Corporation (2.54%).

Based on the strengthened capital stability through this capital increase, Shinhan Financial is expected to continue expanding its domestic and overseas businesses. Shinhan Financial is currently focusing its global expansion investments mainly in Vietnam and Indonesia. Following last year's acquisition of the life insurance company Orange Life, additional acquisitions of non-life insurance companies and asset management firms are anticipated. As Shinhan Financial strengthens its non-bank portfolio including securities and insurance, and since these PEFs hold portfolios across Asia, collaboration such as joint overseas investments through strategic partnerships is also expected.

This content was produced with the assistance of AI translation services.