Orders reach $1.7 billion, six times the offering size

Proceeds to fund future growth projects

[Provided by Hana Securities]
[Provided by Hana Securities]

Hana Securities announced Thursday that it had issued $300 million in US dollar-denominated additional tier-1 bonds on Wednesday, becoming the first domestic brokerage to do so.

The bonds were structured as 30NC5 instruments, carrying a 30-year maturity with a call option exercisable after five years.

The securities received a BBB credit rating from S&P Global Ratings. The rating drew strong demand during the book-building process, with more than 120 institutional investors worldwide placing orders totaling $1.7 billion — roughly six times the offering size.

The coupon rate was set at 6.50%, equivalent to the US five-year Treasury yield plus a spread of 169 basis points — 30 basis points tighter than the initial price guidance.

Since its first overseas public bond issuance in 2024, Hana Securities has posted results in the Korean bond market each year, demonstrating a stable capacity to raise funds internationally.

Through this issuance, the firm expanded its investor communication channels and diversified its funding instruments, further cementing its position as a regular issuer of foreign-currency bonds.

Analysts noted that by securing capital-qualifying funding beyond its existing dollar bond program, the firm has strengthened its capital adequacy and expanded its capacity to pursue future growth.

Hana Securities said it plans to deploy the proceeds toward expanding future growth businesses — including global investment banking, corporate finance and venture capital supply — as well as productive finance initiatives.

"Despite a market environment where global volatility could have dispersed investor demand, we secured stable investment interest by engaging key global investors well ahead of the issuance," said Kim Jeong-hun, head of Hana Securities' FICC division. "Having issued foreign-currency AT1 bonds as the first Korean brokerage to do so, we will continue to strengthen long-term relationships with global investors and enhance our capital-raising competitiveness."

Hana Securities also successfully issued $300 million in dollar bonds in May, receiving an A- rating from S&P and attracting orders more than 11 times the offering amount. That deal drew particular attention as it was achieved amid uncertainty stemming from tensions in the Middle East. The firm had also completed its first public Korean bond offering in April last year, successfully raising $300 million in dollar bonds.


jiyun@heraldcorp.com