Shinhan prices new tier-2 sub debt.

Preparing to merge with sister bank, Chohung, Shinhan issues a new tier-2 sub debt offering to achieve new CAR targets.
Shinhan Bank priced a subordinated upper-tier 2 offering yesterday February 22 raising $300 million via Barclays Capital, BNP Paribas and HSBC. The Reg S deal, issued off of ShinhanÆs $3 billon global MTN programme is structured as a 10-year non-call five-year, with a step up coupon.

The leads went out to investors seeking a range of 72bp to 77bp over swaps, but as the book gathered momentum they were able to tighten pricing. The deal was priced inside of initial guidance at 99.901% on a coupon of 5.75% to yield at 5.773%.

This equates to 71bp over swaps or 121.5bp over five-year treasuries. The coupon will step up to 221.5bp over Treasuries if not...

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