Hana Financial Group to sell perpetual bond amid stabilizing yield Financial holding company plans to raise $210 mil in offering

Translated by Kim So-in 공개 2022-05-17 08:02:20

이 기사는 2022년 05월 17일 08:01 더벨 유료페이지에 표출된 기사입니다.

South Korea’s Hana Financial Group will issue a perpetual bond next month to capitalize on stabilizing government bond yields.

The financial holding company sent requests for proposals to major brokerage firms including KB Securities, NH Investment & Securities, Kyobo Securities, Shinhan Financial Investment, Korea Investment & Securities, Hanyang Securities and DB Financial Investment to hire its bookrunners, according to industry sources.

The company plans to raise 270 billion won ($210 million) in an offering which includes a call option of between five years and 10 years after the issuance. Of the total offering, 120 billion won is expected to be used for working capital purpose and the remaining 150 billion won will be used to repay debts.

Hana Financial Group aims to boost the group's core capital ratio and Bank for International Settlements' (BIS) capital adequacy ratio by expanding additional tier 1 capital through the issuance. The bond sale has remarked its return to the bond market in five months.

Conditions for bond sale has improved compared to March and April. The yield on three-year government bonds once fell 11 basis points last week and has hovered around 2.97%.

Hana Financial Group’s BIS ratio and double leverage ratio are being managed at a stable level. The company’s non-performing loan ratio and its ratio of NPL to allowance for bad debts were 0.3% and 174.7%, respectively, as of the end of 2021. Its common equity tier 1 ratio was 13.8% and the BIS ratio was 16.3%. (Reporting by Chan-mi Oh)
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