Hana Bank Issues 600 Million Euro Social Covered Bond

3-Year Maturity, 3.75% Coupon Rate

Hana Bank has successfully issued social covered bonds (dual recourse bonds) worth 600 million euros (approximately 886.5 billion KRW). Through this, it plans to increase financial support for small-scale small and medium-sized enterprises (SMEs).

On the 27th, Hana Bank announced that it issued such social covered bonds the previous day. This is the second time Hana Bank has issued covered bonds since the 500 million euro issuance in January 2021. This is evaluated as having solidified its position as a regular issuer in the euro covered bond market.

The bonds issued this time are fixed-rate euro-denominated covered bonds (dual recourse bonds). After completing investor recruitment, the maturity was set at 3 years, and the final issuance interest rate was fixed at 3.75%. In addition, it received the highest credit rating of 'AAA' from international credit rating agencies Standard & Poor's (S&P) and Fitch. The lead managers for the issuance were BNP Paribas, Citi, Cr?dit Agricole Securities, HSBC, and Soci?t? G?n?rale (SG).

The funds secured in the form of social covered bonds will be used to provide financial support to SMEs with fewer than 10 employees, in line with the purpose of 'co-growth with SMEs.'

A Hana Bank treasury department official said, "This bond issuance is an opportunity to expand the position of Korean-issued covered bonds in the euro market and is expected to have a positive impact on improving the issuance conditions of covered bonds by domestic financial institutions in the future."

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