New capital capacity to support global IB, corporate finance, venture investment and productive finance
Hana Securities is broadening its foreign-currency funding base and strengthening its capital position as it expands investment in global investment banking, corporate finance and venture capital.
The brokerage has moved beyond conventional dollar-denominated bonds by issuing foreign-currency hybrid capital securities for the first time among South Korean securities firms. The move adds a capital-eligible instrument to its funding portfolio as the company seeks to diversify both funding sources and maturities.
On Sept. 30, Hana Securities issued $300 million in U.S. dollar-denominated hybrid capital securities. The notes have a 30-year maturity and are callable after five years under a 30NC5 structure. S&P assigned a BBB rating to the securities.
The offering attracted orders of $1.7 billion from more than 120 institutional investors worldwide, equivalent to nearly six times the issue size. The coupon was set at 6.50%, or 169 basis points above the five-year U.S. Treasury yield, 30 basis points tighter than the initial price guidance.
Foreign-Currency Funding Expands Across Maturities
The latest transaction extends a foreign-currency funding strategy that Hana Securities has been building over the past several years.
Since entering the overseas public bond market in 2024, the brokerage has continued to tap global investors. Its funding structure has expanded from three-year dollar bonds to five-year senior notes and now to 30-year hybrid capital securities.
Hana Securities’ foreign-currency bonds stood at about 1.97 trillion won as of the end of June, up from 623.4 billion won at the end of 2024. The company has also increased its global medium-term note program limit from $2 billion to $5 billion, giving it greater flexibility to issue bonds in international markets.
Earlier this year, Hana Securities issued $300 million in five-year senior notes. The deal attracted more than $3.3 billion in orders from 168 institutional investors, demonstrating continued demand from overseas investors.
The latest hybrid capital securities differ from conventional senior bonds in that they can be recognized as regulatory capital under applicable requirements. Hana Securities expects the transaction to strengthen its capital adequacy while providing additional capacity for business expansion.
New Funding Capacity Supports Corporate Finance
The expansion of foreign-currency funding comes as Hana Securities increases its focus on corporate finance and productive investment.
The brokerage has been diversifying its funding channels while directing additional financial capacity toward businesses including corporate financing, equity capital markets, acquisition financing and venture investment.
Its short-term note business has also emerged as another funding channel. Hana Securities began the business this year and has been using the funds raised to support areas including corporate lending and venture investment.
The company has also reorganized parts of its investment banking operations to strengthen its focus on productive finance, with greater emphasis on providing capital to companies and growth industries.
Global IB and Venture Capital Among Growth Areas
Hana Securities plans to use the additional financial capacity created by the hybrid securities issuance to expand global IB, corporate finance, venture capital investment and other growth businesses.
The company is also seeking to build longer-term relationships with global institutional investors by regularly accessing overseas capital markets and broadening the range of foreign-currency instruments it can issue.
The latest transaction adds a long-term capital instrument to a funding structure that already includes senior foreign-currency bonds and other financing channels.
Kim Jung-hoon, head of the FICC division at Hana Securities, said the company secured stable investor demand through continued communication with major global investors ahead of the issuance.
“Following the first foreign-currency hybrid capital securities issuance by a Korean securities firm, we will continue to strengthen our capital-raising capabilities by building long-term relationships with global investors,” Kim said.
