South Korea’s Shinhan Card Co. said on Wednesday that it has successfully raised $450 million in rare dual currency offering backed by its card receivables in average maturity of 42 months.
According to Shinhan Card, it has eliminated risk elements deriving from currency and interest rate fluctuations through swaps. The unsecured cross-border asset-backed securities received AAA rating by Fitch Ratings. The company said it was able to draw the new funding at relatively favorable conditions, but did not disclose the terms.
Shinhan Card plans to use the proceeds from the latest issuance to pay back existing debt and carry out operations. The issuance saved cost through a mix of offering in U.S. dollar and euro.
An unnamed official from Shinhan Card said that the latest successful issuance proves its high credit rating and procurement capability as it comes despite interest rate hike trend in the United States that has led to increased volatility in the financial market at home and abroad. Shinhan Card had also issued $350 million in dollar-denominated asset-backed securities in March.
By Oh Chan-jong and Lee Eun-joo
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