Shinhan Securities arranges Vingroup’s first Arirang bond and plans KRW 40 billion investment
Shinhan Financial Group is expanding its partnership with Vietnam’s Vingroup from auto financing into capital markets, seeking to turn its established retail finance relationship into broader corporate and investment banking opportunities.
Shinhan Financial said on September 20 that Chairman Jin Ok-dong and other executives met with Vingroup management at Shinhan Bank Vietnam’s headquarters in Ho Chi Minh City on September 17 to discuss ways to broaden cooperation between the two groups.
Vingroup, Vietnam’s largest private-sector conglomerate by market capitalization, has businesses spanning real estate and electric vehicles. Shinhan Financial has built its relationship with the group largely through financing services linked to VinFast, Vingroup’s electric vehicle unit.
Auto finance provides foundation for broader cooperation
Since 2024, Shinhan Bank Vietnam has provided a cumulative $100 million in auto loans to customers purchasing VinFast vehicles.
Shinhan Finance Vietnam has also expanded its presence in the mobility finance market. In the first half of this year alone, the company provided KRW 15 billion ($10.8 million) in installment financing for approximately 14,000 VinFast motorcycles.
Based on that track record, the two groups are now looking beyond consumer auto finance.
Shinhan Securities Vietnam plans to explore capital market opportunities including equity and bond financing, while Shinhan Bank Vietnam and Shinhan Finance Vietnam will seek to expand their financing businesses in response to growing demand for VinFast electric vehicles.
The move also gives Shinhan Financial an opportunity to bring together its banking, securities and consumer finance operations in Vietnam around major corporate clients, extending its local business from individual financial products toward group-wide financial services.
Vingroup’s first Arirang bond links Vietnam with Korean capital
Capital markets are emerging as a key area of the partnership.
Shinhan Securities Vietnam is serving as the sole financial arranger for Vingroup’s first Arirang bond, a Korean won-denominated bond issued in South Korea by a foreign company or institution.
The bond is targeted for issuance in the fourth quarter, with Shinhan Securities Vietnam working to attract demand from Korean institutional investors.
Shinhan Securities will also participate as a joint lead manager for the domestic bond issuance and plans to make a direct investment of KRW 40 billion.
The transaction represents a shift in the relationship between the two groups. What began with financing for individual VinFast customers is extending into corporate funding and cross-border capital market transactions.
For Shinhan Financial, connecting the financing needs of a major Vietnamese company with Korean institutional capital could also create opportunities beyond its existing local financial operations.
Vietnam remains key overseas market for Shinhan
Vietnam has long been one of Shinhan Financial Group’s key international markets. The group has built a local network spanning banking, securities and consumer finance, while gradually expanding its business with Vietnamese individuals and companies.
Shinhan Financial is also strengthening its role in helping Korean companies enter the Vietnamese market.
The group held the “Shinhan Future’s Lab Vietnam Demo Day” to support Korean startups seeking business opportunities in Vietnam. It also signed a memorandum of understanding with the Korea Credit Guarantee Fund to jointly identify and support companies expanding overseas and connect them with business development and financial services.
“Vietnam is one of Shinhan Financial Group’s key global business hubs, where we have continued to expand our operations based on local customers and companies,” Chairman Jin Ok-dong said.
“Building on the transaction experience we have accumulated with Vingroup, we will broaden our cooperation into capital markets and other areas to create new business opportunities.”
By linking its existing VinFast auto finance business with Vingroup’s corporate funding needs, Shinhan Financial is broadening the scope of its Vietnam strategy. The latest partnership also points to a larger role for the group in connecting Vietnamese companies with Korea’s capital markets as its business in the country moves beyond traditional banking.
