On Oct. 25, Shinhan Card announced that its Kazakhstan subsidiary, Shinhan Finance, successfully raised US$60 million in investment from the International Finance Corporation (IFC).
The investment signing ceremony was conducted virtually and was attended by Moon Dong-kwon, president of Shinhan Card, and Momina Aijazuddin, senior representative of IFC’s Middle East, Central Asia, and Turkey region (MCT) Financial Institution Group.
This fundraising follows the memorandum of understanding signed in May between Shinhan Financial Group and IFC to expand their collaboration in global and environmental, social, and governance fields.
The significance of this deal lies in Shinhan Finance being recognized by the IFC for its growth trajectory in the auto finance market and its social contribution activities. Additionally, the funding, acquired with a favorable interest rate compared to market rates and a maturity of 5 years, is anticipated to bring substantial cost-saving benefits.
Of the US$60 million, Shinhan Finance plans to allocate US$20 million as operating capital for the rapidly growing auto finance sector. The remaining funds will be utilized for product development targeting local women-owned SMEs that face challenges due to limited access to financing.