NH NongHyup Bank said on the 30th that it issued 400 billion won in hybrid capital securities. Hybrid capital securities are hybrid securities that have the characteristics of both stocks and bonds, and are notable for being recognized as capital, not a liability, in accounting.
According to NongHyup Bank, the spread on the hybrid capital securities is 65 basis points (1 bp = 0.01 percentage point). NongHyup Bank said it lowered the spread by 11 basis points from last year's 76 basis points through active investor relations (IR).
The final coupon was set at 4.33%, adding a 65-basis-point spread to the 5-year Treasury at 3.68%. It is a perpetual bond with a 5-year call option.
Assistant Vice President for Funding and Markets Lee Sang-seon of NongHyup Bank said, "Even in a market environment with high interest-rate volatility, we achieved meaningful issuance results through active IR and by expanding our investor base," and added, "Based on the strengthened capital, we will enhance our preemptive capital-ratio management and reinforce a stable growth foundation."