Shinhan Bank Raises 40 Billion Yen in Japanese Samurai Bond Market

First Issuance of Yen-Denominated Transition Bonds

Shinhan Bank has raised a total of 40 billion yen (approximately 378 billion won) by issuing yen-denominated transition bonds in the Japanese Samurai bond market.

Shinhan Bank announced on November 10 that it successfully completed the issuance of transition bonds totaling 40 billion yen on November 7. Samurai bonds are yen-denominated bonds issued by foreign companies or governments in the Japanese bond market. The bonds issued this time have maturities and interest rates of 2 years (1.322%), 3 years and 3 months (1.556%), and 5 years (1.732%).

This issuance marks the first transition bond in the Samurai bond market. Transition bonds are a type of ESG (Environmental, Social, and Governance) bond, issued with the purpose of raising funds for companies aiming to reduce carbon emissions and minimize environmental impact. This was the first such attempt amid growing interest in transition bonds within Japan. As investor interest from both inside and outside Japan increased, Shinhan Bank expanded the issuance amount by 10 billion yen compared to its initial plan.

The funds raised will be used exclusively for purposes such as improving energy efficiency in high-carbon industries and supporting eco-friendly transition projects, in accordance with international transition finance standards, to strengthen sustainability. A Shinhan Bank representative stated, "The success of this issuance is expected to serve as a catalyst for overseas financial institutions to enter the Japanese transition finance market," adding, "We will continue to strengthen our relationships with overseas investors based on financial performance and capital stability."

Meanwhile, Shinhan Bank has issued ESG bonds for 13 consecutive times since the second half of 2020.

This content was produced with the assistance of AI translation services.