Shinhan Financial Group said on Monday it secured orders worth 529 billion won, nearly twice the notified amount, in bookbuilding held on March 6 for the issuance of hybrid capital securities.

The deal was the first this year among the four major financial holding groups to issue a contingent capital bond, a hybrid security with a five-year call option. Institutional investor demand came in at about twice the notified amount of 270 billion won. Shinhan Financial increased the final issuance size to 400 billion won and set the yield at 4.20 percent.

The success comes as financial authorities have been stressing preparations to activate market-stabilisation programmes in response to uncertainty in financial markets. The outcome is seen as an example showing the domestic financial market's capital-raising function is operating in a stable manner.

Analysts said it was meaningful that institutional investor demand remained solid despite external uncertainty, including geopolitical risk. They said it confirmed the stability of the domestic capital market and trust in financial institutions.

Shinhan Financial also issued hybrid capital securities at a yield of 3.26 percent in its previous issuance in 2025. It said that was the lowest level since August 2021, when a cycle of global tightening and interest rate hikes began in earnest.

The strong bookbuilding result is seen as showing that bond investors who emphasise financial soundness and qualitative fundamentals have maintained firm trust in Shinhan Financial despite external uncertainty, including geopolitical risk.

A Shinhan Financial official said, "Shinhan Financial will continue to contribute to financial market stability through active communication with the market and pre-emptive capital and liquidity management." The official added, "Based on a stable capital base, we will continue sustainable growth and enhance shareholder value."