Hana Bank raises $600M in oversubscribed dollar bond sale
What's the deal? South Korea's Hana BankDealroom has a profile for this one. Try Dealroom → raised $600 million through a sale of US dollar-denominated senior bonds, it announced on October 14. The offering drew $2.7 billion in orders — 4.5 times the issuance amount.
The details: The Seoul-based lender split the deal into three-year and five-year fixed-rate notes, with final coupon rates of 5.25% and 5.5%, respectively. The bonds carry ratings of "A+" from Standard & PoorDealroom has a profile for this one. Try Dealroom →'s and "Aa3" from Moody's.
Why it matters: Strong demand let Hana Bank tighten final pricing spreads by 33 basis points on the three-year notes and 30 basis points on the five-year notes from initial guidance. Orders held at $2.7 billion even after tightening, locking in favourable terms amid global market uncertainty.
The China angle: Hana Bank, a major affiliate of Hana Financial GroupDealroom has a profile for this one. Try Dealroom →, credited the result partly to efforts to widen its investor base in mainland China. It held its first non-deal roadshows in Shanghai and Beijing to court Chinese institutional investors, who have been expanding offshore bond holdings.
What they're saying: "Despite persistent uncertainty in global financial markets, we successfully completed the bond issuance thanks to strong interest and confidence from overseas investors," a Hana Bank treasury representative said.
The signal: The oversubscribed sale — landing around the median for deals of its size — shows Korean lenders can still secure cheap foreign-currency funding by tapping newer pools of capital. Mainland China is emerging as a key source for international issuers.
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