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Shinhan Card issues social bonds worth $400m

South Korea’s leading credit card company Shinhan Card said Thursday that it has issued social bonds worth $400 million via a public offering.

The issuance of the bonds, aimed at funding small-and medium-sized businesses and helping the financially marginalized, is the first of its kind in the local credit card segment since the global financial crisis in 2008, according to Shinhan.

Some 100 institutional investors -- nearly 82 percent from the Asian region and the rest from Europe and the Middle East -- participated in the fundraising scheme. During the subscription period, global investors made nearly $1.5 billion worth of orders to purchase the bonds, which was 3.8 times higher than the company’s initial target.

The Korean credit card issuer attributed its industry-leading market position, and stable credit ratings the bonds had received from Moody’s Investors Services and Standard & Poor’s to the successful issuance.

“Despite growing uncertainties due to the ongoing coronavirus pandemic, Shinhan was able to raise funds through the bond sale, and to improve its reputation in the global market,” said an official from the card company, adding that the company will keep trying to reinforce its environmental, social and corporate governance strategy.

BNP Paribas, Citibank, Standard Chartered and HSBC served as the lead underwriters while DBS Bank and Mitsubishi UFJ Financial Group worked as co-managers.

By Kim Young-won (
Korea Herald daum