Shinhan Bank Issues New Hybrid Capital Securities Worth 323 Billion KRW

Expected Increase of 0.18 Percentage Points in Equity Ratio

[Asia Economy Reporter Yu Je-hoon] Shinhan Bank announced on the 4th that it has issued new hybrid capital securities (contingent capital securities) worth 323 billion KRW. These new hybrid capital securities are perpetual bonds with a fixed interest rate of 4.50% and are callable after 5 years.

Shinhan Bank initially planned to issue new hybrid capital securities worth 270 billion KRW, the amount registered in the initial securities registration statement, but due to strong interest and participation from institutional and retail investors, valid demand surged, leading to a final issuance amount increase to 323 billion KRW.

Despite increased volatility in the international bond market and unstable market conditions, following the issuance of subordinated bonds last November, Shinhan Bank succeeded in issuing new hybrid capital securities for the first time among the four major commercial banks this year, confirming strong investor preference, according to Shinhan Bank.

A Shinhan Bank official stated, "Through this issuance of new hybrid capital securities, Shinhan Bank's capital adequacy ratio is expected to increase by 0.18 percentage points," adding, "We will continue to proactively expand our capital base and manage a stable capital adequacy ratio going forward."

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