Woori Bank to Issue New Capital Securities Worth 500 Billion Won Next Month

600 Billion KRW Worth of Stock Still Remaining
Shinhan Financial Group Announces Event Plan in Advance
"Measure to Alleviate Global Banking Sector Concerns"

As global banking sector instability spreads, domestic financial holding companies and banks are rapidly finalizing plans to exercise call options (early redemption rights) on hybrid capital securities one after another.

According to the financial sector on the 28th, Woori Bank decided to exercise the call option on hybrid capital securities worth 500 billion KRW issued in April 2013 next month.

In addition, Woori Bank can exercise call options on hybrid capital securities worth 400 billion KRW in July and 200 billion KRW in November. However, Woori Financial Group, the holding company, is understood to have no hybrid capital securities eligible for call option exercise this year.

Earlier, Shinhan Financial Group also announced the day before that it plans to exercise the call option next month on hybrid capital securities worth 135 billion KRW issued in April 2018. Shinhan Financial Group explained that it disclosed the exercise plan in advance to prevent the spread of concerns over the global banking system, such as the surge in Deutsche Bank’s credit default swap (CDS) premium following the write-off of Credit Suisse’s hybrid capital securities.