Shinhan Bank Issues $500 Million Formosa Bonds
Shinhan Bank announced on the 13th that it successfully completed a public offering of foreign currency Formosa bonds worth USD 500 million on the 12th. This bond is a 5-year maturity floating rate bond, with the issuance rate set at USD SOFR (Secured Overnight Financing Rate) plus 1.08%.
Shinhan Bank previously succeeded in issuing USD 500 million Formosa bonds, the largest Korean-origin Formosa bond issuance in the Taiwanese capital market, even amid the global liquidity crunch caused by the spread of COVID-19 in April 2020.
Notably, this bond issuance was initially planned at USD 300 million, but due to demand from regional foreign investors exceeding expectations, it was increased to USD 500 million. Additionally, the interest rate was set more than 0.1% lower compared to typical global bonds, reducing funding costs.
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A Shinhan Bank official stated, “Despite uncertain market conditions, achieving an oversubscribed issuance at a relatively low interest rate is highly meaningful,” adding, “We hope that the unwavering trust and preference of overseas investors toward Shinhan Bank will positively influence interest rate decisions for future foreign currency bond issuances by domestic institutions.”
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