Shinhan Card Secures $300 Million Overseas Syndicated Loan

Shinhan Card announced on June 24 that it has successfully secured a $300 million (approximately KRW 415.7 billion) overseas syndicated loan.

A syndicated loan is a loan structure in which two or more banks form a consortium to lend a certain amount under common terms. Shinhan Card arranged this overseas syndicated loan with a syndicate of 14 global financial institutions, including the lead arranger HSBC, as well as Hang Seng Bank, OCBC Bank, and Shinkin Central Bank, among others from Taiwan and China.

This loan was finalized at a rate based on the Secured Overnight Financing Rate (SOFR), the U.S. risk-free benchmark, with an additional 0.70 percentage points for the three-year tranche and 0.80 percentage points for the five-year tranche. It is evaluated that Shinhan Card has secured large-scale liquidity at lower rates compared to the domestic market, while also making significant progress in diversifying its overseas funding sources.

Shinhan Card was able to attract active participation from major banks in the Asia region, thanks to the trust it has built through overseas asset-backed securities (ABS) and public bond issuances. At a roadshow held in Hong Kong and Taiwan in April, a total of 28 institutions attended, demonstrating high investment interest.

The funds raised will be used to repay existing borrowings and for operating capital.

A Shinhan Card representative stated, "This syndicated loan is significant in that it has secured new overseas funding sources, thereby diversifying our borrowing channels," and added, "We will continue to establish a stable funding base to strengthen the foundation for sustainable growth."