Shinhan Card issues $400 mn overseas ABS

(Shinhan Card)

Shinhan Card Co. said Tuesday it has issued $400 million worth of overseas asset-backed securities (ABS).

The securities, backed by credit card receivables, have an average maturity of three years and six months. They were issued in collaboration with DBS Bank and ING Bank as social ABS. Global rating agency Moody’s assigned the highest “Aaa” rating.

The funds will be used to support financially vulnerable groups, including low-income households and borrowers with weak credit.

“The issuance has significance in establishing a stable funding environment by diversifying funding sources,” said a company official. “We plan to continue tapping overseas markets to secure stability and reduce reliance on domestic card bond issuance.”