Key Takeaways
- • Hana Securities issued $300 million in 30-year U.S. dollar-denominated hybrid capital securities on September 30, 2026, becoming the first South Korean securities firm to access this funding instrument, with a BBB rating from S&P and a 6.50% coupon (169 basis points over five-year Treasury yields).
- • The offering achieved 5.7x oversubscription with $1.7 billion in orders from over 120 global institutional investors, with final pricing 30 basis points tighter than initial guidance, signaling strong institutional demand for Korean issuer credit.
- • Foreign-currency bond holdings surged to 1.97 trillion won as of June 30, 2026, representing a 216% increase from 623.4 billion won at end of 2024, reflecting an accelerated diversification across three-year, five-year, and 30-year maturities since market entry in 2024.
- • The capital raise expands Hana Securities' funding capacity to support scaling operations in global investment banking, corporate finance, venture capital, and productive finance initiatives, underscoring a strategic pivot toward international wholesale markets.
Summary
Hana Securities has broadened its foreign-currency funding base through a landmark issuance of $300 million in U.S. dollar-denominated hybrid capital securities on September 30, 2026. The transaction marked the first issuance of such instruments by a South Korean securities firm, establishing Hana as a pioneer in accessing this funding channel. The notes carry a 30-year maturity with a 5-year call provision (30NC5 structure) and were rated BBB by Standard & Poor's, positioning the securities as capital-eligible instruments under regulatory frameworks.
The offering attracted substantial international demand, with orders reaching $1.7 billion from more than 120 institutional investors across global markets—a 5.7x oversubscription ratio that reflects strong institutional confidence in the issuer. The final coupon was set at 6.50%, or 169 basis points above the five-year U.S. Treasury yield, pricing 30 basis points tighter than initial guidance. This favorable execution underscores improving credit perception and competitive positioning within Asian financial institution issuance.
Hana Securities' foreign-currency funding strategy has expanded materially over the past three years. The firm entered overseas public bond markets in 2024 and has systematically elongated its maturity profile, progressing from three-year dollar bonds through five-year senior notes to the newly issued 30-year hybrid securities. This progression reflects deliberate capital structure optimization aligned with the company's global growth ambitions. Foreign-currency bonds outstanding stood at approximately 1.97 trillion won as of June 30, 2026, compared to 623.4 billion won at year-end 2024—a 216% increase that demonstrates accelerated market access and institutional appetite for diversified funding sources.
The capital strengthening initiative directly supports Hana Securities' expansion into global investment banking, corporate finance, venture capital, and productive finance segments. By diversifying both funding sources and maturities while accessing lower-cost capital structures through hybrid instruments, the firm has positioned itself to scale wholesale and capital-light business lines with enhanced financial flexibility.
The offering attracted substantial international demand, with orders reaching $1.7 billion from more than 120 institutional investors across global markets—a 5.7x oversubscription ratio that reflects strong institutional confidence in the issuer. The final coupon was set at 6.50%, or 169 basis points above the five-year U.S. Treasury yield, pricing 30 basis points tighter than initial guidance. This favorable execution underscores improving credit perception and competitive positioning within Asian financial institution issuance.
Hana Securities' foreign-currency funding strategy has expanded materially over the past three years. The firm entered overseas public bond markets in 2024 and has systematically elongated its maturity profile, progressing from three-year dollar bonds through five-year senior notes to the newly issued 30-year hybrid securities. This progression reflects deliberate capital structure optimization aligned with the company's global growth ambitions. Foreign-currency bonds outstanding stood at approximately 1.97 trillion won as of June 30, 2026, compared to 623.4 billion won at year-end 2024—a 216% increase that demonstrates accelerated market access and institutional appetite for diversified funding sources.
The capital strengthening initiative directly supports Hana Securities' expansion into global investment banking, corporate finance, venture capital, and productive finance segments. By diversifying both funding sources and maturities while accessing lower-cost capital structures through hybrid instruments, the firm has positioned itself to scale wholesale and capital-light business lines with enhanced financial flexibility.
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