Shinhan Bank Issues New Capital Securities Worth 310 Billion KRW... First Monthly Interest Payment in Banking Sector

First Monthly Interest-Paying Hybrid Capital Securities Issued in Banking Sector Attract Retail Demand
Proactive Issuance to Strengthen Core Capital...Capital Adequacy Ratio Rises by 0.17%p

[Asia Economy Reporter Yu Je-hoon] Shinhan Bank announced on the 17th that it has issued KRW 310 billion worth of won-denominated hybrid capital securities (contingent capital securities). This hybrid capital security is a perpetual bond with a fixed interest rate of 5.70% and is callable after 5 years.

Shinhan Bank initially planned to issue hybrid capital securities worth KRW 210 billion, the amount declared in the initial securities registration statement, but due to strong interest and active participation from institutional and retail investors, valid demand surged, leading to a final issuance amount increase to KRW 310 billion.

Despite the recent sharp rise in domestic bond yields and increased international volatility creating a very unstable market environment, the issuance succeeded thanks to active participation from retail customers with high demand for monthly interest payments and institutional investors seeking high-quality capital securities.

A Shinhan Bank official stated, "Even amid expanding volatility in the bond market, we planned issuance with monthly interest payments through active communication with investors, which attracted participation from various institutions," adding, "We expect the issuance of these hybrid capital securities to increase our capital adequacy ratio by 0.17 percentage points (p), and we will continue proactive capital expansion and stable capital adequacy ratio management going forward."

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