Hana Securities has issued $300 million in foreign-currency hybrid capital securities, the first such deal by a South Korean brokerage, securing room to expand its future growth businesses.
The firm said on the 1st that it issued the U.S. dollar-denominated hybrid securities on Sept. 30. The notes carry a 30-year maturity with a call option exercisable after five years, a structure known as 30NC5. Standard & Poor's assigned the securities a BBB rating.
More than 120 institutional investors worldwide took part in the book-building, placing orders worth $1.7 billion, about six times the offering amount. The coupon was set at 6.50% a year, or 169 basis points over the five-year U.S. Treasury yield. One basis point equals 0.01 percentage point. Strong demand allowed the firm to price the deal 30 basis points below its initial guidance.
Hana Securities said the deal strengthened its capital adequacy by securing funds that count as capital, moving beyond foreign-currency funding centered on dollar bonds. The company plans to use the additional capacity for global investment banking, venture capital supply and other business expansion, as well as for financing productive sectors such as SMEs and innovative industries.
"Even in an environment where global market volatility can scatter investor demand, we secured stable demand by communicating with major global investors ahead of the issuance," said Kim Jung-hoon, head of the FICC division at Hana Securities. "We will keep strengthening our competitiveness in capital raising by building long-term relationships with global investors."
Hana Securities has continued raising foreign-currency funds since its first overseas public offering of Korean paper in 2024. Last year, after turmoil in the Middle East, it became the first domestic brokerage to issue $300 million in dollar bonds. That deal drew an A- rating from S&P and orders exceeding 11 times the offering amount.
