TRADE FINANCE | Cesar Tordesillas, Korea

Shinhan Bank's dimsum bond sales in Hong Kong bring RMB600M

Shinhan Bank raised RMB600 million or US$95 million through dimsum bond sales in Hong Kong.

The two-year yuan-denominated bonds carried a coupon rate of 3. 5 percent.

Standard & Poor's on Tuesday assigned its 'A' global scale rating to the bonds, saying that the bond proceedswill be used for general corporate purpose.

"Borrowing costs from the dimsum bond issuance were lower than those from dollar bonds. The result came amid the recently upgraded sovereign rating of South Korea and growing demand for bonds issued by South Korean players," said an official at the bank.

The dimsum bond refers to a bond denominated in the Chinese yuan and issued in Hong Kong by foreign companies.

The bonds are attractive to foreign investors who want exposure to yuan- denominated assets.

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