Shinhan Card issues US$400 mln in social bonds

SEOUL, Oct. 15 (Yonhap) -- Shinhan Card Co., a major credit card company in South Korea, said Thursday that it has issued US$400 million worth of social bonds to overseas investors through a public offering.

The foreign currency bonds carry a final spread of 107.5 basis points, down 32.5 basis points from an initial offer, on the back of good ratings from global credit appraisers, Shinhan Card said.

Moody's Investors Service has granted an "A2" rating to the debt, with Standard and Poor's awarding an "A minus" rating.

Social bonds refer to those aimed at raising funds for projects with positive social outcomes for a specific group of citizens.

Shinhan Card said the debt sale marks the first public flotation of foreign currency bonds by a South Korean credit card company since the 2008 global financial crisis.

The social bonds, which were about 3.8 times oversubscribed, will be listed on the Singapore Exchange, according to the card issuer affiliated with major South Korean lender Shinhan Bank.

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