Shinhan sees dim sum bond sale as safe bet

Shinhan Bank said yesterday it has raised 625 million yuan ($99 million) in so-called dim sum bonds to diversify its foreign currency debts in the face of global financial uncertainty.

The yuan-denominated bonds with a maturity of one year have a yield of 2.5 percent, the lender said in a statement.

The interest rate is lower than dim sum bonds floated by other foreign financial institutions with higher credit ratings than Shinhan, it added.

The bank claims it ranks as the first Korean private lender to float dim sum bonds, which have attracted six institutional investors. The debt sales will help Shinhan diversify its foreign currency debts as concerns about the debt crisis in Europe persist and expectations of the yuan’s appreciation against the U.S. dollar pushed up demand for yuan-denominated assets. Yonhap