Shinhan Vietnam Bank Issues First Local Currency Bond in Vietnam Worth 153 Billion VND

29 Years Since Entering Vietnam... Second Among Foreign Banks
Issued Long-Term Bonds at Relatively Low Interest Rates... "Confirmed High Local Creditworthiness"

[Asia Economy Reporter Yoo Je-hoon] Shinhan Bank announced on the 11th that Shinhan Vietnam Bank has issued local bonds worth 2.8 trillion VND (approximately 153 billion KRW) in Vietnam.

The bonds issued this time are the first local currency bonds issued by Shinhan Vietnam Bank since its entry into the local market 29 years ago, and they are the second issuance among foreign banks operating in Vietnam.

Additionally, these bonds have a 2-year maturity with an issuance interest rate of 4.0%. Considering that the average interest rate for 1-year fixed deposits at the four major state-owned banks in Vietnam is over 5.5%, the market evaluates that stable long-term funds were raised at a low interest rate.

Despite the recent surge in Vietnam government bond yields due to the monetary tightening by the U.S. Federal Reserve (Fed) and the resulting frozen bond investment sentiment, the successful bond issuance confirms that Shinhan Vietnam Bank is recognized for its high creditworthiness locally, according to the company.

A Shinhan Vietnam Bank official stated, "The bonds were issued to prepare for increased volatility in the global financial markets," and added, "We are also considering additional issuances to proactively respond to the growing diverse financial needs of local customers."

Meanwhile, Shinhan Vietnam Bank operates the largest number of 43 business channels among foreign banks in Vietnam and ranks first in several areas including current profit and loss and number of customers among foreign banks.