[이코노믹리뷰=박창민 기자] On the 9th, Shinhan Financial Group succeeded in recruiting demand for basel 3 qualified amortization conditional capital securities worth 600 billion won to domestic institutional investors.
This issuance was carried out in the form of 5-year and 10-year call options. The demand was raised at an interest rate of 2.94% for a 5-year call option of 430 billion won and a rate of 3.30% for a 10-year call option of 170 billion won.
Shinhan Financial Group announced that it has decided to issue new capital securities to secure the group’s growth potential through preemptive capital expansion, taking into account the market environment where interest rate volatility is expanding.
Despite the recent rise in market interest rates and increasing internal and external uncertainty, based on the highest level of profits and creditworthiness in the financial sector, the decision was made to issue a value of 600 billion won, which is 200 billion won more than the amount of the securities report, receiving attention from various investors such as insurance companies, public interest foundations, and mutual aid association did.
In addition, through the issuance of new capital securities, Shinhan Financial has improved its financial indicators and maintained stable capital adequacy. The group’s total capital (BIS) ratio is expected to increase by 0.24%p to 16.0% compared to the end of 2020, and the double leverage ratio is expected to increase by 2.70%p to 115.1%.
A Shinhan Financial official said, “This issuance is of great significance in terms of securing proactive growth potential and strengthening capital adequacy in preparation for an uncertain market environment, as well as diversifying investors and maturity portfolios.” I will do my best to increase the value.”