Samsung Life Insurance (032830.KS) said on the 27th that it had completed a $1.5 billion sale of 30-year hybrid capital securities overseas, the largest such offering by a South Korean insurer.
The notes priced at a final yield of 6.875%. "Global bond yields have risen recently, which worsened issuance conditions, but the level is not high considering this was our first overseas hybrid capital issuance," a Samsung Life official said. Japan Post Insurance sold $1 billion of dollar-denominated subordinated notes in September, its first such deal, at a yield of 6.5%.
Top-tier long-term investors from the U.S. and Europe took 49% of the offering, the highest share for any hybrid capital securities issued by a South Korean insurer.
Samsung Life said it would use the proceeds to strengthen its capital adequacy ratios ahead of time, maintain a stable shareholder return policy and secure new growth drivers over the medium to long term.