Hanwha Life Insurance Approves Issuance of Hybrid Capital Securities Worth Up to $1 Billion

by Oh Yukyo

Published 27 May.2025 18:53(KST)

"Preparing for Global Regulations" ... Sustainability Bond Format Likely
Issuance Size Around 1.3 Trillion Won ... Terms to Be Finalized Based on Market Conditions
No Maturity, Conditional Redemption Possible ... Expected to Improve International Capital Adequacy Ratio
Hanwha Life Insurance: "Aimed at Responding to K-ICS ... Entire Amount to Be Used for Capital Enhancement"

Hanwha Life Insurance is planning to issue foreign currency hybrid capital securities worth up to $1 billion (approximately 1.3 trillion won).

Hanwha Life Insurance Approves Issuance of Hybrid Capital Securities Worth Up to $1 Billion

According to the financial investment industry on May 27, Hanwha Life Insurance held a board meeting on this day and approved the plan to issue foreign currency hybrid capital securities. It is highly likely that this issuance will take the form of a sustainability bond. The specific terms will be finalized later, taking into account future market conditions and demand forecasts.

Hybrid capital securities are bonds recognized as capital and are typically issued in the form of perpetual bonds. They have the characteristic that payments may be deferred and there is no maturity date, although redemption is possible under certain conditions. Through this issuance, Hanwha Life Insurance expects to improve its financial soundness and to strengthen its capital adequacy ratio as assessed by international credit rating agencies.

In particular, as global interest rates signal a peak and credit spreads are narrowing, domestic insurance companies are once again gaining access to foreign currency funding channels. In this context, Hanwha Life Insurance's issuance is expected to influence similar funding activities by other insurance companies.

Hanwha Life Insurance stated, "This is a proactive response to changes in the global financial market and capital regulations," adding, "All funds raised will be used to strengthen capital soundness by improving the capital adequacy ratio (K-ICS)."