NH Nonghyup Bank to Issue New Hybrid Capital Securities Worth 420 Billion KRW on July 4

NH Nonghyup Bank announced on the 30th that it has successfully completed the investor recruitment for new hybrid capital securities worth 420 billion KRW. The securities will be issued on the 4th of next month.

New hybrid capital securities are financial products that, like stocks, have no maturity or very long maturity periods, and, like bonds, pay a fixed interest or dividend annually.

The new hybrid capital securities being issued this time have a 5-year call option condition, with an issuance interest rate of 5.30% per annum. The interest rate of the 5-year government bond, which serves as the benchmark rate, is 3.56%, and the spread is about 174 basis points (1bp = 0.01 percentage points).

An official from Nonghyup Bank said, "Despite the recent market volatility caused by the US's additional interest rate hike announcements, we successfully completed the book building by gaining recognition for Nonghyup Bank's stability, asset soundness, and profitability."

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