Securing the foundation for non-banking and digital growth
Repeatedly confirming strong investment demand
Shinhan Financial Group announced on the 10th that it has succeeded in recruiting demand for basel 3 qualified amortization conditional capital securities worth 600 billion won to domestic institutional investors.
The issuance of new capital securities was conducted in the form of 5-year and 10-year call options. The recruitment was completed at an interest rate of 2.94% for a 5-year call option of 430 billion won and an interest rate of 3.30% for a 10-year call option of 170 billion won.
Shinhan Financial Group 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.
Shinhan Financial said, “Despite the recent rise in market interest rates and increasing internal and external uncertainty, Shinhan Financial Group has received attention from various investors such as insurance companies, public interest foundations, and mutual aid associations based on the highest level of profits and creditworthiness in the financial sector. We have decided to issue it,” he explained.
Through this 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, “We will do our best to improve corporate and shareholder value based on stable capital management in the future.”
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