Shinhan Bank Successfully Issues 600 Million Euro Green Covered Bond

Shinhan Bank announced on September 8 that it has successfully issued a green covered bond worth 600 million euros (approximately 944.4 billion won).

A covered bond is a bond that is secured by high-quality assets held by the issuing institution. Investors in these bonds hold priority claims on the collateral, in addition to dual recourse against the issuing institution.

This bond has a maturity of 3.5 years, with a coupon rate of 3.4116% per annum. Its credit ratings have been set at ‘Aaa’ by Moody’s and ‘AAA’ by Fitch.

The final issuance yield was decided at 0.19 percentage points above the mid-swap rate (MS), which is the benchmark for euro-denominated bonds. This represents a 0.07 percentage point reduction in the spread compared to the initial price guidance. The mid-swap rate is a swap rate used to convert a floating interest rate into a fixed rate.

Prior to this issuance, Shinhan Bank conducted local roadshows in major European cities including London, Munich, Luxembourg, and Copenhagen to meet with key investors. In the subsequent book-building process, total orders reached 1.9 billion euros—about 3.8 times the original issuance target of 500 million euros. Based on this strong investor demand, Shinhan Bank finalized the bond issuance at 600 million euros.

A Shinhan Bank representative stated, “Through this green covered bond issuance, we aim to strengthen our position as a regular issuer in the euro covered bond market, and we will continue to issue ESG-linked bonds in the future to further expand our global investor base.”

This content was produced with the assistance of AI translation services.