Shinhan Bank to issue KRW 300 billion write-down contingent capital preferred securities

By Rebecca Melvin

New York, Feb. 5 – Shinhan Bank said its board of directors made a resolution to issue KRW 300 billion write-down contingent capital securities for the purpose of maintaining capital requirements under Basel 3.

The write-down securities are considered additional tier 1 capital under Basel, according to a regulatory release.

The perpetual securities will be non-callable for five or 10 years.

Under existing law, the total amount of the contingent capital securities including interest will be written off upon designation as an insolvent financial institution without any consent or approval from related parties.

Shinhan is a Seoul, South Korea-based retail bank.

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