Shinhan Financial Investment Issues Korea's First Public Rental Bond ABS

[Asia Economy Reporter Minji Lee] Shinhan Financial Investment announced on the 2nd that it has successfully completed the issuance of the first public rental receivables ABS in Korea.

Shinhan Financial Investment underwrote the public issuance of rental receivables ABS for Bodyfriend, the market leader in the domestic massage market. The publicly issued securitized ABS amounted to 39.4 billion KRW, of which the senior ABS was assigned the highest credit rating of AAA. The asset securitization of Bodyfriend's rental receivables was carried out on a total scale of 50.3 billion KRW, including public securitization.

In line with the purpose of the amendment to the "Asset Securitization Act" to expand the registered securitization market, Shinhan Financial Investment has been promoting both public and private registered securitization businesses, and as a result of these efforts, it has initiated a new business of the first public rental receivables ABS securitization in Korea.

Bodyfriend successfully advanced from funding through private securitization to registered securitization of rental receivables via public issuance. This is expected to strengthen the company's mid- to long-term financial flexibility linked to sustainable growth.

Shinhan Financial Investment established the first terminal installment receivables securitization platform in the industry in 2012 and led structured finance by conducting public securitization of MVNO (Mobile Virtual Network Operator) installment receivables in 2017. In line with the recent trend of expanding the public securitization market, it plans to continue performing public securitization of various assets in the future.

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