Shinhan Financial Investment Issues Kimchi Bond for Vietnamese Credit Specialist Company

[Asia Economy Reporter Minji Lee] Shinhan Financial Investment announced on the 15th that it has successfully acted as the sole lead manager for the issuance of a Kimchi bond by a Vietnamese credit finance company, marking the first time a domestic securities firm has done so.

Shinhan Financial Investment successfully completed the sole lead management of a 2-year maturity Kimchi bond issuance worth 30 million USD (approximately 33.9 billion KRW) for Mirae Asset Finance Company (hereafter MAFC), a local Vietnamese company. MAFC, the issuer of the Kimchi bond, is a Vietnamese credit finance company established with 100% equity from Mirae Asset Capital. Despite the COVID-19 situation, it has rapidly penetrated the market and secured the 5th largest market share in Vietnam's consumer finance industry.

As the sole lead manager of this deal, Shinhan Financial Investment proposed funding methods to MAFC in collaboration with its local Vietnamese subsidiary, based on its extensive track record handling numerous Southeast Asian credit finance deals. Although the issuance of the Kimchi bond was delayed due to the impact of COVID-19, Shinhan Financial Investment maintained continuous business networks with the issuer and successfully relaunched the bond issuance aligned with market stabilization. Notably, it gained exclusive rights from the proposal stage through to funding, attracting significant attention.

Since expanding its IB and global organizations into a collaborative matrix organization at the Shinhan Financial Group level in 2019 (namely the GIB Business Division and Global Business Division), Shinhan Financial Investment has promoted global IB deals through close cooperation between the two divisions, including becoming the first domestic securities firm to lead the issuance of a Kimchi bond by an Indonesian local company in 2020.

Shinhan Financial Investment stated, “By issuing the first Kimchi bond from a credit finance company in the rapidly growing Vietnamese credit finance sector, we have established ourselves as a strong player in the Southeast Asian IB market,” adding, “We expect to secure more diverse opportunities within Vietnam going forward.”

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