At the Lowest Coupon Rate of 2.875%
Shinhan Financial Group announced on May 6 that it issued US$500 million of Basel III compliant AT1 bonds at the lowest rate ever on May 4. The sustainability bond includes a call option for redemption in five years.
The coupon rate is 2.875 percent, subscriptions added up to US$3.9 billion, and the rate was lowered by 52.5 bp from the initial rate as a result. “This is the lowest AT1 bond rate and the first below three percent in the global market,” Shinhan Financial Group explained.
The bonds are planned to be used in various ESG projects, including those for non-large companies and low-income earners, environmental improvement and renewable energy development.
Shinhan Financial Group’s financial indicators have improved based on the bond issuance. It is expected that its BIS capital adequacy ratio has risen by 0.22 percentage points to 16.12 percent and its double leverage ratio has improved by 2.43 percentage points to 112.96 percent as compared with March.