Shinhan Investment Corp. has successfully completed a big corporate acceptance financing deal worth US$50 million (60.50 billion won) in Singapore.
The deal was a joint effort by Shinhan Investment and Deutsche Bank Singapore, for LOLC Private Ltd., a consumer finance firm in Singapore which took out US$50 million worth of senior loans.
LOLC Private Ltd. controls PRASAC and LOLC Cambodia, which rank first and fourth in Cambodia’s consumer credit market, LOLC Finance, the largest non-banking financial institution in Sri Lanka, and LOLC Myanmar, the third largest microfinance institution in Myanmar.
Shinhan Investment said its sister companies helped it complete the deal. Shinhan Financial Group launched the global and investment banking (GIB) business division in June 2017 by grouping relevant affiliates, including Shinhan Investment. This was part of the group’s plans to create synergy in doing business in the global capital market. Since the launch of the GIB division, the financial group has achieved significant results in Southeast Asia.
Notably, Shinhan Investment has emerged as a leading IB firm in Southeast Asia as it led the issuance of corporate bonds for a Vietnamese firm and Kimchi bonds for an Indonesian company last year and successfully issued US$90 million (108.90 billion won) worth of Kimchi bonds for an Indonesian company in May this year.
An official from the GIB division said, “The corporate acceptance financing deal was not large in size, but it is meaningful to us as we did it in Singapore which is a capital market hub in Asia and a financial hub in Southeast Asia, beyond Indonesia and Vietnam. We will continuously expand our Asian coverage in the future to gain more ground in the capital market in Southeast Asia.”