Shinhan Card, South Korea’s leading credit card issuer, has broken new ground by selling AUD 300 million (US$191 million) in Kangaroo Bonds, becoming the first domestic card company to tap this market. The three-year bonds were priced at 1.3% above the Australian swap rate, reflecting strong investor appetite.
The offering attracted orders totaling AUD 1.5 billion from 93 institutions across Australia, Asia, and Europe. This overwhelming demand allowed Shinhan to tighten the spread by nearly 20 basis points from initial guidance.
This move follows Shinhan’s February issuance of US$300 million in Formosa Bonds, marking the first Korean entry into the Taiwanese bond market this year. These successive international bond sales highlight the company’s strategy to diversify funding sources and reduce dependence on domestic markets.
While Shinhan touts these issuances as steps toward a stable funding environment, investors should note that expanding into foreign currency debt also exposes the company to exchange rate risks. The success of these offerings may encourage other Korean financial institutions to explore similar funding avenues, potentially increasing competition for international capital.
