Shinhan Bank issues $500mn in subordinated bonds

[Photo by Yonhap]

South Korean commercial lender Shinhan Bank Co. announced on Tuesday that it has successfully sold $500 million foreign currency-denominated subordinated notes.

According to Shinhan Bank, the 10-year issues were sold at an annual coupon rate of 5.75 percent, which was 1.4 percentage points above the United States’ 10-year government bond yield.

“Ahead of the bond issuance, we held investment sessions in Asia and the U.S. and emphasized stability and an active approach to mitigating various risk factors such as the global financial market uncertainty,” said a bank official.

“Investor response was robust, with orders exceeding seven times the issuance amount at once.”

Since the second half of 2020, Shinhan Bank has dedicated its foreign currency offerings to environmental, social responsibility, and governance (ESG) programs.

The notes will serve as social bonds financing loan products for financially vulnerable borrowers.