ID :
30894
Tue, 11/18/2008 - 18:28
Auther :

Hana Financial seeks to raise capital via bond sale

SEOUL, Nov. 18 (Yonhap) -- Hana Financial Group Inc., South Korea's No. 4 financial holding company, is seeking to raise up to 1 trillion won (US$704 million) through a bond sale in a bid to beef up its main banking unit, industry sources said Tuesday.

According to the sources, Hana Financial's board of directors will hold a meeting
later in the day to review the capital increase plan, the proceeds of which will
be used to bump up the capital adequacy ratio at Hana Bank, the country's
fourth-largest bank.
Shares of Hana Financial were trading at 15,800 won on the Seoul bourse as of 10
a.m., down 4.24 percent.
The average capital adequacy ratio of local banks, determined by the Bank for
International Settlements (BIS) as a measure of banks' financial soundness, stood
at 10.79 percent at the end of September, down from 11.36 percent at end-June.
Commercial banks in South Korea are required to keep above 8 percent capital
ratio in reserve.
There has been speculation that Hana Bank would be the first local lender to seek
a capital increase, as the bank is feared to continue to suffer losses into the
fourth-quarter of the year.
Hana Bank logged a loss of 71 billion won in the July-September period due to
increased loan-loss reserves.
Last week, the Financial Services Commission, the country's financial regulator,
said domestic lenders planned to lift their capital ratios to 11 percent by
selling subordinated bonds and other measures.
sam@yna.co.kr
(END)

X