Shinhan Financial Group Doubles Demand for Hybrid Capital Securities, Ups Issuance to 400 Billion Won

Shinhan Financial Group announced on March 9 that it has successfully attracted strong demand for its issuance of hybrid capital securities, securing bids worth 529 billion won—twice the announced amount—despite heightened volatility in the financial markets following the recent war between the United States and Iran.

This issuance marks the first contingent convertible bond (with a 5-year call option) among the four major financial holding companies this year. The initial announced amount was 270 billion won, but due to institutional investor demand nearly doubling that figure, the final issuance was increased to 400 billion won. The interest rate was set at 4.20%.

This is seen as an example of the domestic financial market’s capital-raising function operating stably, even in the face of recent market volatility.

Shinhan Financial Group also issued hybrid capital securities at a record low rate of 3.26% during the previous issuance last year, the lowest since the global tightening and interest rate hike cycle began in August 2021.

A Shinhan Financial Group representative stated, “The enthusiastic demand in this round of bookbuilding shows that bond investment institutions, which prioritize financial soundness and qualitative fundamentals, continue to have strong confidence in Shinhan Financial Group despite external uncertainties such as geopolitical risks. We will continue to pursue sustainable growth and enhance shareholder value based on a stable capital foundation.”

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