Hana Bank issues $600 million in foreign-currency bonds, taps Chinese investors

[Financial News] Hana Bank has issued $600 million in U.S. dollar-denominated senior bonds, expanding its investor base in China. Demand remained firm even after the final spread was set, demonstrating the bank’s strong credit standing and competitive ability to secure stable foreign-currency funding. 
According to financial industry sources on the 14th, Hana Bank successfully issued a total of $600 million in U.S. dollar-denominated senior bonds amid growing volatility in global financial markets. 
The issuance comprised fixed-rate bonds with maturities of five and three years. The final spreads were lowered by 0.3 and 0.33 percentage points, respectively, from the initial guidance, setting the annual coupon rates at 5.50% for the five-year bonds and 5.25% for the three-year bonds. The bonds were rated ‘A+’ and ‘Aa3’ by international credit rating agencies Standard & Poor’s (S&P) and Moody’s, respectively.
Even after the final spread was set, investor demand remained at $2.7 billion, 4.5 times the amount issued. 
To expand its investor base, Hana Bank held an investor presentation (NDR) in China for the first time. The move was in line with growing investment in offshore bonds by institutional investors in mainland China. Direct communication with major local institutional investors helped secure new demand. In particular, active order participation by mainland Chinese institutional investors contributed to stable demand and lower issuance rates.
A Hana Bank treasury official said, “Despite ongoing uncertainty in global financial markets, we successfully issued the bonds, thanks to strong interest and confidence from overseas investors.”
Meanwhile, Hana Bank issued a $100 million foreign-currency digital bond last month using Euroclear’s blockchain platform. 
[email protected] Lee Hyun-jung Reporter