Hana Financial Group Inc.

06/21/2022 | Press release | Distributed by Public on 06/21/2022 00:24

Decision on Issuance of Bail-in Contingent Capital Securities

Report of Disclosure Revision
Revision Date 2022-06-20
1. Disclosure Documents in relation with Revision Decision on Issuing of Bail-In Type Contingent Capital Securities (Material Business matters of Subsidiary Company)
2. Submission date of documents 2022-06-16
3. Reason for Revision Changes in issuance-related terms and conditions
4. Revised Information
information before revision after revision
4. Interest rate
- Coupon rate (%)
- 4.76
4. Interest rate
- Yield to maturity (%)
- 4.76
19. Other matters to be factored into investment decisions (1) The details of the disclosure above are intended to enhance the BIS capital adequacy ratio through the expansion of tier 2 capital.

(2) The "2. Total face value of bonds" above is expected to be issued in the amount of KRW 296 billion for 10-year maturity according to the demand forecast results within the issuance amount decided by the board of directors.

(3) The "4. Interest rate" above is expected to be decided as the interest rate for which 0.98%p is added to the arithmetic average (rounded off to the third decimal point) of the individual treasury bond of 10-year maturity provided by the 4 private rating agencies (Korea Asset Pricing Co., Ltd., KIS Pricing Inc., NICE Pricing & Information Inc., and Fn Pricing Inc.) two business days before the date of subscription date.

(4) For other details related to these securities, please refer to the securities declaration report to be submitted by KEB Hana Bank in the future.

※ Disclosure on key matters of management of subsidiary
- Name of subsidiary: KEB Hana Bank
- Ratio to total assets: 63.0% (FY2021)

※ In the event of any conflict or inconsistencies may arouse due to English translation, the original disclosure in Korean shall prevail.
(1) The details of the disclosure above are intended to enhance the BIS capital adequacy ratio through the expansion of tier 2 capital.

(2) The "2. Total face value of bonds" above is expected to be issued in the amount of KRW 296 billion for 10-year maturity according to the demand forecast results within the issuance amount decided by the board of directors.

(3) The "Coupon rate" and "Yield to maturity" in "4. Interest rate" above were decided at 4.76% by reflecting the base interest rate 2 business days before the issuance date in the spread determined as per the demand forecast results.

(4) For other details related to this security, please refer to the securities declaration report to be submitted by KEB Hana Bank in the future.

※ Disclosure on key matters of management of subsidiary
- Name of subsidiary: KEB Hana Bank
- Ratio to total assets: 63.0% (FY2021)

※ In the event of any conflict or inconsistencies may arouse due to English translation, the original disclosure in Korean shall prevail.
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Decision on Issuance of Bail-in Contingent Capital Securities
Subsidiary company KEB Hana Bank 's material business matters to report
1. Type of securities Series No. 14 Type Domestic unregistered unguaranteed unsecured Principal Write-down Contingent Capital Securities (subordinated debt)
2. Total face value of bonds (or electronically registered bonds) (KRW) 296,000,000,000
2-1 (Overseas issuance of bonds) Total face value of bonds (or electronically registered bonds) (currency unit) - -
Basic exchange rate, etc. -
Region of issuance -
Name of exchange (if overseas listing) -
3. Purpose of financing Facility investment (KRW) -
Business acquisition (KRW) -
Operating capital (KRW) 296,000,000,000
Debt repayment (KRW) -
Acquisition of securities issued by other corporations (KRW) -
Other purposes (KRW) -
4. Interest rate Coupon rate (%) 4.76
Yield to maturity (%) 4.76
5. Maturity date of bonds 2032-06-22
6. Interest payment method The interest accruing on this bond shall be paid in arrears every 3 months from the date of issuance until the day before the date of maturity, and if the due date for the interest payment falls on a bank holiday, the payment shall be made on the first business day following the bank holiday; and even if the payment is delayed, the interest will not be calculated and paid separately for the number of days delayed.
7. Principal payment method Redemption upon maturity
8. Bond issuance method Public offering
9. Details on debt adjustment Cause of debt adjustment Where the issuer has been designated as an insolvent financial institution pursuant to Article 2 Paragraph 2 of the Act on Structural Improvement of the Financial Industry
Scope of debt adjustment Total face value of the bonds
Procedures used to determine scope of debt adjustment If a reason or cause for debt rescheduling occurs for the issuer, this bond will be permanently amortized in full, at which time, the amortization of this bond will not be considered to be a reason or a cause of non-performance of debt or default. Amortization takes effect on the 3rd business day from the date on which the cause for debt rescheduling occurs.
9-1. Details of option -
10. Date of subscription 2022-06-22
11. Date of payment 2022-06-22
12. Lead underwriter Hanyang Securities Co., Ltd.
13. Guarantor -
14. Date of board resolution (decision date) 2021-12-23
- Attendance of outside directors Present (No.) 6
Absent (No.) 0
- Attendance of auditors (members of Audit Committee) Present
15. Subject to filing of securities registration statement? Yes
16. Reasons for exemption from filing securities registration statement, if exempted N/A
17. Details of securities lending & borrowing transactions related to overseas issuance of securities -
18. Subject to reporting to the Fair Trade Commission? No
19. Other matters to be factored into investment decisions (1) The details of the disclosure above are intended to enhance the BIS capital adequacy ratio through the expansion of tier 2 capital.

(2) The "2. Total face value of bonds" above is expected to be issued in the amount of KRW 296 billion for 10-year maturity according to the demand forecast results within the issuance amount decided by the board of directors.

(3) The "Coupon rate" and "Yield to maturity" in "4. Interest rate" above were decided at 4.76% by reflecting the base interest rate 2 business days before the issuance date in the spread determined as per the demand forecast results.

(4) For other details related to this security, please refer to the securities declaration report to be submitted by KEB Hana Bank in the future.

※ Disclosure on key matters of management of subsidiary
- Name of subsidiary: KEB Hana Bank
- Ratio to total assets: 63.0% (FY2021)

※ In the event of any conflict or inconsistencies may arouse due to English translation, the original disclosure in Korean shall prevail.
[Details of Issuance to Designated Purchasers]
Name Relationship to company or the largest shareholder Total face value of bonds (or electronically registered bonds) (KRW)
- - -
[Intended Use of Funds]
For operation of loans and marketable securities