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Shinhan Financial Group raises US$500 mln via debt sale

Finance 10:00 May 06, 2021

SEOUL, May 6 (Yonhap) -- Major South Korean financial holding firm Shinhan Financial Group Co. said Thursday it has raised US$500 million by selling U.S. dollar-denominated notes.

The Additional Tier 1 (AT1) sustainability bonds carry a yield of 2.875 percent and a five-year call option, Shinhan Financial said in a statement.

The debt sale was nearly eight times oversubscribed, allowing Shinhan Financial to float the debt at a lower rate than originally offered.

Shinhan Financial said the proceeds from the sale will be used to help fund a range of environmental, social and governance projects.

Funds raised via AT1 securities are classified as capital, but AT1 securities will be written down if the issuing bank becomes financially non-viable. Sustainability bonds are floated to exclusively finance a combination of green and social projects.

Shinhan Financial has flagship Shinhan Bank and other subsidiaries, including Shinhan Financial Investment Co. and Shinhan Card Co., under its wing.

The corporate logo of Shinhan Financial Group Co. (Yonhap)


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