Chicago, Jan. 22 – Shinhan Bank priced €500 million of 3.32% green mortgage covered bonds with a three-year tenor (Aaa//AAA), according to a source.
The notes priced at par, or at mid-swaps plus 54 basis points. Guidance started in the mid-swaps plus 62 bps area.
HSBC (billing and delivery), BNP Paribas, Credit Agricole CIB, JPMorgan, LBBW, Mizuho and Societe Generale were the joint lead managers for the Regulation S deal.
When investor meetings started on Jan. 15, the bank was exploring a two-tranche issue with a five-year tenor in addition to the three-year note.
The order book was reported to be over €1.75 billion, including €185 million of interest from the joint lead managers.
Proceeds will be used for loans extended to individuals for the acquisition of housing units that have obtained level II or above from Green Standard for Energy and Environmental Design of Korea (G-SEED) or which otherwise fall within the green buildings category of Shinhan Bank’s sustainable development goals financing framework dated March 2022.
Shinhan Bank is a lender based in Seoul, South Korea.
| Issuer: | Shinhan Bank
|
| Amount: | €500 million
|
| Issue: | Green mortgage covered bonds
|
| Maturity: | Jan. 29, 2027
|
| Bookrunners: | HSBC (billing and delivery), BNP Paribas, Credit Agricole CIB, JPMorgan, LBBW, Mizuho and Societe Generale
|
| Coupon: | 3.32%
|
| Price: | Par
|
| Yield: | 3.32%
|
| Spread: | Mid-swaps plus 54 bps, or Bunds plus 92 bps
|
| Trade date: | Jan. 22
|
| Settlement date: | Jan. 29
|
| Ratings: | Moody’s: Aaa
|
| Fitch: AAA
|
| Distribution: | Regulation S
|
| Price talk: | Mid-swaps plus 62 bps area
|
| Marketing: | Investor meetings
|
| ISIN: | XS2740452649
|
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