Shinhan prints rare AT1 from holdco to spark premium talk

Argument
By Addison Gong
09 Aug 2018

Shinhan Financial Group Co’s debut dollar Basel III additional tier one (AT1), priced on Tuesday, sparked a debate between Asian bankers, analysts and investors. The deal was rare, being issued through the bank’s holding company rather than using the opco structure which is much more common in Asia. That left many wondering what premium, if any, issuers must pay for holdco deals, writes Addison Gong.

The Korean bank roadshowed for the trade in late June, but a deal did not came to fruition as dollar AT1s from across Asia took a battering in the secondary market earlier this year. That kept supply subdued ...

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