NongHyup Bank Issues KRW 400 Billion in Hybrid Capital Securities... Up by KRW 100 Billion from Initial Plan

Achieving Results Through Active IR and Expansion of Investor Base

NH NongHyup Bank announced on April 30 that it has successfully issued KRW 400 billion in hybrid capital securities.

This issuance was carried out amid growing domestic and international uncertainties, including geopolitical risks in the Middle East and a sharp rise in interest rates following South Korea's first-quarter GDP "earnings surprise."

On April 23, the yield on five-year government bonds surged by 9 basis points (1bp = 0.01 percentage point) in a single day, rising from 3.56% to 3.65%, reflecting worsening market conditions.

NongHyup Bank managed to set the credit spread at 65bp through active communication with investors, successfully reducing it by 11bp compared to last year's issuance spread of 76bp.

The final issuance interest rate was set at 4.33%, which is the sum of the five-year government bond yield (3.68%) and the spread (0.65%). The securities are structured as perpetual bonds with a five-year call option.

The offering, which initially started at KRW 300 billion, was increased to KRW 400 billion, indicating that institutional investors recognized NongHyup Bank's soundness and funding capability.

Lee Sangseon, Deputy President of the Treasury & Markets Division at NongHyup Bank, stated, "Despite the highly volatile interest rate environment, we achieved meaningful issuance results through active IR and the expansion of our investor base. Based on the strengthened capital, we will further enhance our proactive capital ratio management and solidify a stable foundation for growth."

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