Shinhan Bank Issues New Hybrid Capital Securities Worth 400 Billion KRW

Equity Ratio Increased by 0.20 Percentage Points

Shinhan Bank announced on the 2nd that it has issued 400 billion KRW of hybrid capital securities (contingent capital securities). These hybrid capital securities are perpetual bonds with a fixed interest rate of 4.19% per annum and are callable after 5 years.

Shinhan Bank, Jung-gu, Seoul. Photo by Jinhyung Kang aymsdream@

Shinhan Bank initially planned to issue 270 billion KRW of these hybrid capital securities, but due to active participation from institutional investors, valid demand reached 748 billion KRW (2.8 times oversubscription), leading to a final issuance amount increase to 400 billion KRW.

Shinhan Bank engaged in communication with the underwriting group and conducted proactive investor relations (IR) activities to attract participation from various institutions, achieving the lowest spread among commercial banks (5-year government bond + 85 basis points).

A Shinhan Bank official stated, “Despite the decline in global economic indicators and market volatility, we were able to confirm strong investor preference and interest in Shinhan Bank,” adding, “Through this hybrid capital securities issuance, Shinhan Bank’s capital adequacy ratio is expected to increase by 0.20 percentage points. We will continue to build a trusted bank through proactive capital expansion and stable ratio management.”

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