Shinhan Bank said it issued $600 million (about 9.05 trillion won) in global senior foreign-currency bonds on April 1.
The deal marked the first overseas foreign-currency bond sale by a major South Korean commercial bank since tensions in the Middle East rose following the war between the United States and Iran. Investor demand totaled about $7 billion (about 10.563 trillion won), the bank said.
The bonds were issued as development finance notes, aimed at creating social and economic value by supporting climate-change response, expanding financial inclusion and backing small and midsize businesses.
The offering was split evenly between a $300 million, three-year floating-rate note and a $300 million, five-year fixed-rate note. The spread on the three-year FRN was set at 0.58 percentage points over SOFR, a U.S. risk-free benchmark rate. The five-year fixed-rate note was priced at 0.43 percentage points over the yield on a U.S. Treasury of the same maturity.
A Shinhan Bank official said the bank achieved a stable result by broadening its investor base and maintaining communication despite continued volatility in global markets. The official said the bank will pursue sustainable growth based on trust with global investors.
* This article has been translated by AI.
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