Shinhan Financial Group subsidiary Shinhan Bank issues 250 billion won subordinated bonds to improve BIS ratio with no shareholder dilution
Shinhan Financial Group corrected the disclosure for its subsidiary Shinhan Bank, increasing the issuance of subordinated contingent convertible bonds from 200 billion to 250 billion won.
The funds raised are for operating purposes to strengthen supplementary capital and improve the BIS total capital ratio, with a 10-year maturity ending June 12, 2036.
The interest rate is set at the average of four agencies' 10-year government bond yields plus 0.78 percentage points, reflecting market conditions.
Since this is a debt issuance without any equity component, existing shareholders face no dilution, and the improved capital adequacy may support stock price stability.
[AI Summary]Shinhan Financial Group's subsidiary issues subordinated bonds to enhance capital ratio without diluting shareholders, a defensive capital management move. The public offering with a bank-led syndicate ensures credibility, but the increased leverage and interest costs require monitoring.
KOSPI Filing Information
[Correction of Description] Decision On Issuance Of Amortizing Conditional Capital Securities (Major Management Matters Of Subsidiary)