Woori Financial Group Successfully Issues 300 Billion KRW of Hybrid Capital Securities

Investor Interest Surges, Issuance Increased to 300 Billion Won

[Asia Economy Reporter Yu Je-hoon] Woori Financial Group announced on the 21st that it has successfully issued 300 billion KRW worth of new Korean won subordinated bonds (contingent capital bonds). This comes amid increased uncertainty in the financial market, including a recent sharp rise in domestic and international interest rates.

According to Woori Financial, the demand forecast conducted on the 20th attracted more demand than the announced amount of 210 billion KRW. Accordingly, Woori Financial decided to increase the issuance of new subordinated bonds up to the maximum of 300 billion KRW approved by the board of directors. Through this, Woori Financial Group's capital adequacy ratio (BIS ratio) is expected to rise by about 15 basis points (1bp=0.01%).

A Woori Financial Group official stated, "Despite the challenging issuance market conditions, such as weakened investor sentiment toward long-term bonds, we successfully chose the timing of issuance appropriately," adding, "With high market expectations for this year's record-high performance, we will continue to strengthen risk management and loss absorption capacity in preparation for a complex crisis and economic downturn in the second half of the year."

Meanwhile, the bonds issued this time are perpetual bonds with a call option for early redemption after 5 years, with an issuance interest rate set at 4.99%, and the issuance date is scheduled for the 28th.

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