By Reshmi Basu
New York, July 8 - Shinhan Bank sold an offering of $350 million in 10-year bonds (Baa2/BBB-) at 99.80 to yield Treasuries plus 132 basis points, according to a market source.
The issue priced at the wide end of revised price guidance. Guidance had been lowered to 130½ to 132½ basis points over Treasuries from 134 basis points.
The upper tier II bonds will be non-callable for five years. If the bonds are not called, there will be a step up to 198 basis points over the Treasury rate at that time, a spread 150% bigger than the initial pricing level.
ABN Amro and Banc of America Securities are the lead managers for the Regulation S transaction.
Shinhan Bank, based in Seoul, is a private retail bank.
Issuer: Shinhan Bank
| Amount: | $350 million
|
| Issue: | Upper tier II bonds
|
| Maturity: | July 15, 2015
|
| Coupon: | 5 1/8%
|
| Price: | 99.80
|
| Yield: | 5.171%
|
| Spread: | 132 basis points
|
| Call option: | Callable on July 15, 2010; if not called, coupon steps up to 198 basis points more than the Treasury rate at that time
|
| Pricing date: | | July 8
|
| Settlement: | July 15
|
| Lead managers: | ABN Amro, Banc of America Securities
|
| Ratings: | Moody's: Baa2
|
| Standard & Poor's: | BBB-
|
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