Shinhan Financial (NYSE: SHG) to issue KRW 270B write-down AT1 capital
Rhea-AI Filing Summary
Shinhan Financial Group Co., Ltd. resolved to issue KRW 270 billion of KRW-denominated Write-down Contingent Capital Securities classified as Basel 3 Compliant Additional Tier1 Capital. The stated purpose is to maintain capital requirements under Basel III.
The securities are perpetual, with call options allowing the issuer to redeem them at every three-month interest or dividend payment date after 5 years but no later than 10 years from issuance. If the company is designated an insolvent financial institution under the Act on the Structural Improvement of the Financial Industry, the principal and accrued distributions on these contingent capital securities will be written off without prior consent. Final issuance terms, including interest rate, are delegated to the CEO, and the issuance size may be adjusted within a KRW 400 billion board-approved limit.
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Key Figures
Initial AT1 issuance size: KRW 270 billion
Board-approved issuance limit: KRW 400 billion
First call date: 5 years
+2 more
5 metrics
Initial AT1 issuance size
KRW 270 billion
Total Amount of Issuance for Write-down Contingent Capital Securities
Board-approved issuance limit
KRW 400 billion
Maximum total amount permitted depending on demand forecast
First call date
5 years
Call options exercisable after 5 years from issuance, then every 3 months
Final call limit
10 years
Call options may be exercised no later than 10 years from issuance
Coupon interval
3 months
Call options aligned with each 3‑month interest or dividend payment date
Key Terms
Write-down Contingent Capital Securities, Basel 3 Compliant Additional Tier1 Capital, Point of Non-Viability Trigger Event, insolvent financial institution, +1 more
5 terms
Write-down Contingent Capital Securities financial
"Type of Securities | Write-down Contingent Capital Securities (Basel 3 Compliant Additional Tier1 Capital)"
Basel 3 Compliant Additional Tier1 Capital financial
"Type of Securities | Write-down Contingent Capital Securities (Basel 3 Compliant Additional Tier1 Capital)"
Point of Non-Viability Trigger Event financial
"Point of Non-Viability Trigger Event | Under Article 2 of the Act on the Structural Improvement"
insolvent financial institution financial
"if the issuing company is designated as an insolvent financial institution"
Act on the Structural Improvement of the Financial Industry regulatory
"Under Article 2 of the Act on the Structural Improvement of the Financial Industry"
AI-generated analysis. How Rhea-AI works. Not financial advice.
FAQ
What securities did Shinhan Financial Group (SHG) approve issuing in July 2026?
Shinhan Financial Group (SHG) approved issuing KRW 270 billion of KRW-denominated Write-down Contingent Capital Securities. These qualify as Basel 3 Compliant Additional Tier1 Capital, intended to help the group maintain its regulatory capital requirements under the Basel III framework.
What is the potential size range of Shinhan Financial Group (SHG)'s contingent capital issuance?
The board resolution specifies an initial issuance of KRW 270 billion, with flexibility to change the size. Depending on demand forecasts, the amount may be adjusted within a board-approved total limit of up to KRW 400 billion of contingent capital securities.
What are the maturity and call features of SHG's new contingent capital securities?
The new securities are perpetual, with no fixed maturity date. Shinhan Financial Group may redeem them using call options at every three-month interest or dividend payment date, starting 5 years after issuance and no later than 10 years from the issuance date.
What triggers a write-down of Shinhan Financial Group (SHG)'s new AT1 securities?
A Point of Non-Viability Trigger Event occurs if SHG is designated an insolvent financial institution under the Act on the Structural Improvement of the Financial Industry. In that case, the total amount of the securities, including interest or dividends, will be written off without prior consent.
Why is Shinhan Financial Group (SHG) issuing Basel III Additional Tier1 capital?
The stated purpose of the issuance is to maintain capital requirements under Basel III. By classifying the instruments as Basel 3 Compliant Additional Tier1 Capital, Shinhan Financial Group aims to support its regulatory capital structure as defined under the Basel III rules.
Who will set the final terms of Shinhan Financial Group (SHG)'s contingent capital securities?
Shinhan Financial Group's board delegated determination of the detailed issuance terms and interest rate to the Chief Executive Officer. The CEO will finalize these parameters within the board-approved framework, including the overall limit of up to KRW 400 billion.