Samsung Card Issues CNH 400M Offshore Bond (KRW 88.8B) for Operating Funds; Limited Impact on Shareholder Value
Samsung Card issued the 2878th series of unsecured public bonds denominated in offshore CNH (CNH 400 million, equivalent to approximately KRW 88.848 billion at exchange rate 222.12 won/CNH), with payment on May 28, 2026, and maturity on May 25, 2029 (3-year).
The coupon and yield are fixed at 2.08% per annum. Credit rating is AA+ (from Korea Ratings and NICE Ratings, outlook stable), indicating very high certainty of principal and interest payment.
All proceeds (approx. KRW 88.848 billion) will be used for operating capital, mainly for merchant settlement payments. The company plans to enter into a Cross-Currency Swap (CRS) to convert CNH to KRW, hedging currency risk.
This bond issuance is a standard corporate debt offering with no equity dilution, thus no direct impact on existing shareholders' equity value.
The company maintained its dividend policy (2025: KRW 2,800 per share, payout ratio 46.3%) and holds 9,148,196 treasury shares (7.90%), but has no current plan for additional buybacks or cancellation.
Key risk factors include potential rise in delinquency due to economic slowdown, regulatory pressure (e.g., merchant fee cuts), intensifying fintech competition, and CNH-denominated currency risk (though hedged via CRS).