Business Context and Reporting Period
This Form 6-K filing by Shinhan Financial Group Co., Ltd. covers the month of October 2004. The report details a specific financing activity undertaken by Shinhan Bank, a major banking subsidiary of the Group.
Key Financial Metrics and Transaction Details
The filing announces the issuance of Floating Rate Notes with an aggregate principal amount of USD 50,000,000. The transaction is split into two tranches:
- Tranche 1: USD 25,000,000 with a 2-year maturity (November 9, 2006) and an interest margin of 0.15% per annum over Libor.
- Tranche 2: USD 25,000,000 with a 3-year maturity (November 9, 2007) and an interest margin of 0.20% per annum over Libor.
Both tranches were arranged by WestLB AG, Singapore Branch, with an issue price and redemption price of 100%. Management fees are 0.28% for the 2-year note and 0.48% for the 3-year note. The filing does not provide consolidated revenue, profit, cash flow, or total debt figures for the Group.
Material Changes
The primary material change reported is the decision to raise USD 50 million in debt capital. The trade dates were October 27 and October 28, 2004, with the scheduled issue date set for November 9, 2004. No comparative financial data or changes in operating metrics versus prior periods are included in this specific filing.
Guidance, Outlook, and Risks
The filing contains no management commentary, forward-looking guidance, or discussion of general business risks. The transaction involves bullet repayment on the final maturity date for both tranches. Interest rates are variable, tied to the sum of Libor and the specified interest margin, resetting every 3 months.
Key Facts for Investor Verification
- Verify the successful issuance of the USD 50 million notes on the scheduled date of November 9, 2004.
- Confirm the actual interest rates paid based on Libor fluctuations over the 3-month periods.
- Monitor the Group's total debt load and liquidity position in subsequent filings to assess the impact of this new liability.
- Check for any changes in the credit rating of Shinhan Bank that could affect future borrowing costs.