Hana Securities Becomes First in Industry to Issue USD 300 Million Hybrid Foreign Currency Bonds

Hana Securities announced on October 1 that it has become the first Korean securities firm to issue U.S. dollar-denominated hybrid foreign currency bonds, amounting to USD 300 million.

The issuance follows a "30NC5 structure," which allows the bonds, maturing in 30 years, to be callable after five years. The bonds received a credit rating of 'BBB' from global credit rating agency S&P. During the book-building process, more than 120 institutional investors worldwide participated, resulting in orders amounting to about six times the offering size, with total orders reaching USD 1.7 billion.

The coupon rate was set at 6.50%, a reduction of 30 basis points from the initial guidance, and is determined as the yield on the five-year U.S. Treasury bond (the benchmark rate) plus a spread of 169 basis points (bps).

Since its first overseas offering of Korean paper in 2024, Hana Securities has delivered consistent results in the Korean paper market each year, demonstrating its robust funding capabilities. With this issuance, it has further expanded its investor communication channels and diversified its funding sources, solidifying its standing as a regular foreign currency issuer.

In particular, by securing capital recognized as equity, beyond the typical dollar-denominated bond funding, Hana Securities has strengthened its capital adequacy, thereby enhancing its capacity for future growth initiatives. The company stated that the additional funding capacity will be actively utilized to expand growth businesses such as global investment banking and corporate finance, as well as the provision of venture capital and productive finance.

Jung-Hoon Kim, Head of FICC at Hana Securities, said, "Despite the issuance environment, which could have led to dispersed demand due to global market volatility, we successfully secured stable investor demand through pre-issuance communication with major global investors and achieved successful issuance." He added, "By becoming the first Korean securities firm to issue foreign currency hybrid securities, we have further solidified our market position, and we will continue to enhance our capital procurement competitiveness by strengthening long-term relationships with global investors."

In the wake of the Middle East crisis in 2025, Hana Securities was also the first Korean securities firm to successfully issue a USD 300 million dollar bond in a foreign currency, marking the first such case since the crisis. Despite challenges including the Middle East crisis at the time, it received an 'A-' rating from S&P and attracted more than 11 times the subscription amount, underscoring its strong performance.

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