Shinhan Bank announced the issuance of €600 million (approximately 944.4 billion won) in green covered bonds with a maturity of three and a half years on September 8.
Covered bonds are securities backed by high-quality assets held by the issuing institution, giving investors priority claims on the collateral and dual recourse against the issuer.
The bonds received top credit ratings of 'Aaa' from Moody's and 'AAA' from Fitch. The coupon rate is set at 3.4116% per annum.
The final issuance rate was determined by adding 19 basis points to the mid-swap rate (MS), the benchmark interest rate for euro-denominated bonds. The MS is used to convert floating rates into fixed rates.
Prior to the issuance, Shinhan Bank conducted a roadshow in major European cities, including London, Munich, Luxembourg, and Copenhagen. The bank presented its financial status, covered bond program, and ESG strategy to local investors to gauge demand.
Initially, Shinhan Bank aimed to raise €500 million, but following the demand forecast after the roadshow, orders reached approximately €1.9 billion, nearly 3.8 times the target amount. Consequently, the bank increased the final issuance size to €600 million.
A Shinhan Bank official stated, "Amid ongoing market volatility and uncertainty, we confirmed strong interest in Shinhan Bank through direct communication with investors during the European roadshow. We will continue to issue ESG-linked bonds to expand our global investor base."
* This article has been translated by AI.
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