Woori Financial Group announced on the 12th that it has successfully issued KRW 400 billion worth of won-denominated hybrid capital securities (contingent capital securities). These hybrid capital securities are perpetual bonds with a call option (early redemption) available five years after the issuance date and will be issued on the 19th.
During the preliminary demand forecast conducted on the 11th, Woori Financial received valid demand of KRW 688 billion from institutional investors, recording a subscription amount 2.5 times the initially registered amount of KRW 270 billion. Accordingly, Woori Financial decided to increase the issuance amount to KRW 400 billion.
The hybrid capital securities issued by Woori Financial this time carry an interest rate of 4.27% (5-year government bond + 91bp), which is the lowest among financial holding companies’ hybrid capital securities issued this year. Additionally, the spread of 91bp is the lowest ever recorded among hybrid capital securities issued by domestic financial holding companies.
A Woori Financial Group official stated, “Amid high market expectations for a turnaround in this year’s performance, and buoyed by expectations for full privatization and treasury stock cancellation, we have successfully completed the second issuance of KRW 400 billion in hybrid capital securities following February this year. Woori Financial will continue to strengthen its foundation for sustainable growth through ongoing enhancement of corporate value.”
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