Samsung Life to Issue $1.5 Billion in Offshore Hybrid Capital Securities

[Financial News] Samsung Life Insurance is moving to issue offshore hybrid capital securities worth up to $1.5 billion (approximately KRW 2 trillion). The move is aimed at expanding overseas investments while maintaining capital soundness and the stability of shareholder-return policies, including dividends.
Samsung Life Insurance disclosed that, following board approval on the 8th, it had decided to issue offshore hybrid capital securities with a 30-year maturity, up to a maximum of $1.5 billion.
The issuance is intended to raise investment funds to secure Samsung Life Insurance’s medium- and long-term growth drivers. The company plans to further expand overseas investments while managing its capital soundness steadily and continuing its shareholder-return policies without interruption.
The issue size was determined with consideration for what the global financial markets could absorb without difficulty. Samsung Life Insurance plans to complete the issuance by the end of this year.
To that end, the company plans to begin follow-up procedures, including obtaining credit ratings for the bonds from global credit rating agencies and holding investor presentations (roadshows) for overseas institutional investors.
Samsung Life Insurance’s strong creditworthiness is expected to be a positive factor in raising funds in overseas capital markets.
Global credit rating agencies Moody's Corporation and Fitch rated Samsung Life Insurance 'Aa3' and 'AA,' respectively, that day. Moody's Aa3 rating is on par with those of Japan's Dai-ichi Life and Tokio Marine. Fitch's AA rating is the same as that of Hong Kong-based AIA Life, a global insurance group.
Industry observers believe that issuing offshore hybrid capital securities on the strength of its global-level creditworthiness would give Samsung Life Insurance an advantage in attracting interest from overseas institutional investors. They also consider the move significant because it would broaden the company’s funding base in global financial markets.
A Samsung Life Insurance representative said, "We plan to continue making proactive investments to secure the company's medium- and long-term growth drivers."
[email protected] Hong Yeji Reporter