Shinhan Bank has successfully completed the issuance of $600 million in senior unsecured global bonds, the bank announced on April 1.
The offering consists of two tranches: a three-year floating-rate note (FRN) and a five-year fixed-rate bond (FXD), each valued at $300 million. The three-year FRN was priced at a spread of 58 basis points over SOFR, while the five-year fixed-rate bond was set at 43 basis points over the corresponding U.S. Treasury yield.
Shinhan Bank carefully monitored market conditions amid recent global volatility before proceeding with the issuance. After identifying signs of improving investor sentiment, the bank swiftly launched the bookbuilding process, achieving a stable outcome.
Bookbuilding progressed smoothly from the opening of the Asian market, supported by strong investor demand, with total orders peaking at approximately $7 billion. Following the close of the Asian order book, Shinhan Bank quickly finalized pricing to mitigate market uncertainty.
The final spreads tightened by a total of 37 basis points from the initial price guidance, marking the largest spread compression among Korean issuers since the recent escalation of geopolitical risks. This helped minimize the new issue premium and underscored strong investor confidence.
Notably, the bonds were issued in the form of development finance bonds—the first of their kind among Korean commercial banks. The proceeds are intended to support initiatives such as climate change response, financial inclusion, and small and medium-sized enterprise (SME) development.
A Shinhan Bank official said the successful issuance was driven by efforts to expand the investor base and maintain active communication despite ongoing market volatility. The official added that the bank plans to continue strengthening ESG-based funding strategies and fostering sustainable growth through trust with global investors.
The issuance was jointly managed by Citi, Crédit Agricole, J.P. Morgan, Mizuho Securities, Standard Chartered, and Wells Fargo.
