Shinhan Bank has succeeded in issuing Euro green bonds for the first time in the country's commercial bank. Shinhan Bank said on Oct. 16 that it has succeeded in issuing a five-year foreign currency green bond public offering worth 500 million euros (about 650 billion won).
Green bond is an ESG bond (issued to improve the environment, society and governance) and it is the first time that Shinhan Bank has issued Euro green bonds.
The interest rate is a fixed 0.25 percent, plus 0.70 percent, at the mid-swap rate of five- year euros. By investor region, the distribution was diverse, with 12 percent in France, 10 percent in Germany, 10 percent in the Netherlands, 8 percent in Britain, 25 percent in other European region and 35 percent in Asia, and 60 percent in asset management and insurance companies, 23 percent in banks, and 17 percent in central bank and institutions.
In particular, Shinhan Bank explained that it is meaningful that the central bank and institutions that only participate in the issuance of super high-quality bonds participated.
"The issuing funds will be used as funds for domestic and overseas eco-related business support that conforms to the purpose of issuing green bonds," a Shinhan Bank official said. "We expect the issuance this time to have a positive effect on local financial institutions' future entry into the European capital market and their rate decisions when issuing euro bonds."
