Shinhan Bank Issues 300 Billion KRW of New Hybrid Bonds at "Lowest Ever Interest Rate"

Issuance of Korean Won New Hybrid Capital Securities at Historic Low Interest Rates by Commercial Banks
Proactive Issuance to Expand Core Capital Increases Capital Adequacy Ratio by 15bp

[Asia Economy Reporter Kangwook Cho] Shinhan Bank announced on the 5th that it has issued KRW 300 billion worth of hybrid capital securities (contingent capital securities).

This hybrid capital security is a perpetual bond with a callable option after 5 years, and the issuance interest rate of 2.87% is the lowest among Korean won hybrid capital securities issued by commercial banks.

Shinhan Bank initially planned to issue hybrid capital securities worth KRW 200 billion as stated in the initial securities registration statement, but due to strong demand from various investment institutions during the demand forecast, the effective demand exceeded twice the amount, leading to a final issuance amount increase to KRW 300 billion.

A Shinhan Bank official said, "Through this hybrid capital securities issuance, Shinhan Bank's capital adequacy ratio is expected to increase by 15 basis points," adding, "We will continue to proactively expand our capital base and manage a stable capital adequacy ratio."

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