Woori Bank Successfully Issues New Capital Securities Worth 350 Billion KRW

Increased Issuance to 350 Billion Won Due to Strong Demand Forecast

[Asia Economy Reporter Yu Je-hoon] Woori Bank announced on the 22nd that it successfully issued KRW 350 billion worth of new Korean won subordinated bonds (perpetual contingent convertible bonds) on the 21st.

This new subordinated bond is a perpetual bond with an early redemption option (call option) attached, issued in two tranches: KRW 320 billion for the 5-year call option and KRW 30 billion for the 7-year call option. Woori Bank initially planned to issue a total of KRW 270 billion, but due to strong interest from retail-based investors and institutional investors, demand nearly 1.5 times the initial offering amount was received, leading to a final increase to KRW 350 billion. The issuance interest rates are 5.20% for the 5-year bond and 5.45% for the 7-year bond.

In particular, this bond issuance is the largest among new subordinated bonds issued by commercial banks this year. Despite the supply burden from continued issuance of new subordinated bonds by financial holding companies and banks, and adverse conditions such as sharp interest rate fluctuations caused by the U.S. Consumer Price Index (CPI) shock on the day of the demand forecast, Woori Bank succeeded in attracting maximum demand from investors seeking stable investment destinations through active investor relations (IR) activities.

Woori Bank expects its BIS ratio to increase by approximately 0.21 percentage points (p) through this issuance. The bank stated, "We plan to continue to maintain a stable level of BIS ratio management going forward."

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