Shinhan Bank Issues AUD 400 Million Kangaroo Bonds

Shinhan Bank announced on the 20th that it successfully completed a public offering of Kangaroo Bonds worth 400 million Australian dollars (approximately 362.5 billion KRW) on the 19th.

This Kangaroo Bond was issued with a 5-year maturity and a floating interest rate structure, set at the 3-month Australian dollar swap rate (Bank Bill Swap Rate) plus a margin of 0.97%.

Kangaroo Bonds are bonds issued in the Australian capital market by foreign governments or foreign companies targeting Australian investors. Since its first issuance in 2007, Shinhan Bank has been the only Korean financial institution to regularly issue Kangaroo Bonds.

This Kangaroo Bond was issued as a social bond themed around healthcare and received strong response in line with the growing interest in ESG among Australian investors. Based on high investment demand, Shinhan Bank set the margin at a level lower than initially targeted. The funds raised through this bond issuance will be used for loans to regional medical institutions.

A Shinhan Bank official said, “We hope this social bond issuance will contribute to bridging the gap in local medical services in Korea,” adding, “We will continue to focus on stable foreign currency liquidity management through differentiated funding strategies.”

Meanwhile, BOA Merrill Lynch, Cr?dit Agricole Securities, HSBC, and Mizuho Securities participated as joint lead managers in this Kangaroo Bond issuance.