South Korea’s Shinhan Financial Group Co. sold $500 million additional tier 1 (AT1) bond with sustainability label.
The Basel III-compliant AT1 bond with call option of five years was issued with a coupon yield of 2.875 percent, all-time low among dollar-denominated AT1 bonds issued globally, according to Shinhan Financial Group on Thursday.
Orders amounted to $3.9 billion or eight times the offering to allow the company to issue its AT1 bond at 52.5 basis points lower than its guidance, said the company.
Proceeds from the bond sale will be used on projects supporting environmental protection and social value creation.
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