Shinhan Bank issues $121 mln bonds in Vietnam

Shinhan Bank Vietnam on Thursday issued two-year bonds worth VND2,800 billion ($121 million) for institutional investors in Vietnam, with a coupon rate of 4%.

This is the Korean creditor’s first-time bond issuance in the Vietnamese market in its 29-year history.

“This bond offering reinforces Shinhan Bank's long-standing relationship with Vietnam, contributing to the country's socio-economic development while optimizing value by supporting the development of Vietnamese businesses and capital markets,” said Kang GewWon, CEO of Shinhan Bank Vietnam.

The proceeds from the bond sale would be utilized to expand the bank's credit activities, diversify its capital sources, fulfill its business objectives and ensure the bank's long-term development, he stated in a release.

The lender also announced the application of two indicators, namely LCR (liquidity coverage ratio) and NSFR (net stable funding ratio) to manage liquidity risk in accordance with Basel III standards from April 20.

Shinhan Bank on April 28 was assigned at BB and “Positive” outlook by Standard & Poor’s, a credit rating agency. It remains one of credit institutions with the highest rating on par with Vietnam's credit rating assessed by this organization.

In early April 2022, Shinhan Bank Vietnam and RSQUARE commercial prop-tech company signed a strategic partnership agreement in providing customers of the duo with financial and property relating services.

RSQUARE is a leading prop-tech in South Korea, with approximately $100 million in funding from large investors such as Softbank Venture Asia and Yahoo Japan Capital. In June 2021, RSQUARE opened a Vietnamese branch and revealed its intention to enter the Asian market, based on South Korea’s first map-based property information system.

The company is updating its database of more than 15,000 commercial places through monthly full-scale surveys in Ho Chi Minh City, Hanoi and industrial complexes across Vietnam.