Shinhan Bank raised $400 million through social bonds in Australia’s debt market, continuing its 17-year streak as Korea’s sole financial institution regularly tapping the Kangaroo market.
The five-year floating-rate notes were priced at 97 basis points above the three-month Bank Bill Swap Rate. The proceeds will fund loans to medical facilities in Korea, addressing healthcare access disparities across the country.
The social bond format attracted strong investor interest, enabling Shinhan to secure tighter pricing than initially planned. The deal’s success builds on the bank’s track record in Australia’s debt market since 2007, where it has established itself as a recurring issuer.
BOA Merrill Lynch, Crédit Agricole Securities, HSBC, and Mizuho Securities managed the sale. The bonds add to Shinhan’s foreign currency funding sources as the bank works to diversify its liquidity management strategy.
Australian dollar-denominated Kangaroo bonds allow foreign entities to access the country’s deep investor base while adhering to local market regulations. The format has gained popularity among Asian issuers seeking to expand their funding channels.
The deal’s healthcare focus taps into growing ESG investor demand in Australia’s fixed-income market. Shinhan plans to continue exploring opportunities in the Australian market as part of its broader funding approach.
