Hana Securities said on Wednesday it raised $300 million by issuing U.S. dollar-denominated foreign currency hybrid capital securities, the first by a South Korean securities firm. It plans to use the funds for growth businesses such as global investment banking, corporate finance and venture capital supply.

Hana Securities completed the issuance of $300 million of foreign currency hybrid capital securities on Sept. 30. The notes are structured as 30NC5, with a 30-year maturity and a call option that can be exercised five years after issuance.

The bond received a BBB credit rating from global credit rating agency S&P.

More than 120 institutional investors worldwide took part in bookbuilding, generating $1.7 billion of orders, about six times the offering size. The coupon was set at 6.50 percent a year, adding 169 basis points to the U.S. 5-year Treasury yield. It was 30 basis points lower than the initial price guidance.

Hana Securities has raised funds in overseas capital markets every year since its first offshore public offering of Korean debt in 2024. With this hybrid capital securities issuance, it expanded its foreign currency fundraising beyond existing dollar bond-centered funding to include instruments that are recognised as capital.

Hybrid capital securities are recognised as capital for accounting purposes, and the issuance is expected to boost capital adequacy and secure investment capacity for future business expansion.

Hana Securities plans to use the funds raised for future growth businesses, including global investment banking, corporate finance and venture capital supply, as well as for productive finance.

Kim Jung-hoon (김정훈), head of Hana Securities' FICC division, said, "We secured stable investment demand by communicating with major global investors even before the issuance." He added, "We will strengthen long-term relationships with global investors and continue to enhance our capital-raising competitiveness."