Shinhan raises $500 million with AT1 sustainability bonds

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Shinhan raises $500 million with AT1 sustainability bonds

Major Korean financial holding firm Shinhan Financial Group said Thursday it has raised $500 million by selling U.S. dollar-denominated notes.
The Additional Tier 1 (AT1) sustainability bonds carry a yield of 2.875 percent and a five-year call option, Shinhan Financial said in a statement.
The debt sale was nearly eight times oversubscribed, allowing Shinhan Financial to float the debt at a lower rate than originally offered.
Shinhan Financial said the proceeds from the sale will be used to help fund a range of environmental, social and governance projects.
Funds raised via AT1 securities are classified as capital, but AT1 securities will be written down if the issuing bank becomes financially non-viable. Sustainability bonds are floated to exclusively finance a combination of green and social projects.
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