Shinhan Bank announced on May 11 that Shinhan Bank Vietnam issued bonds worth VND2.8 trillion (153 billion won).
The bonds issued were the first local currency bonds in the 29 years since Shinhan Bank entered the Vietnamese market by establishing Shinhan Bank Vietnam, and the second issuance ever among foreign banks in Vietnam.
Considering that the average interest rate of one-year term deposits at Vietnam's four largest state-run banks is 5.5 percent or higher, experts in the financial market say that Shinhan Bank Vietnam secured long-term funds with a low interest rate as a two-year bond with an issuance rate of 4 percent.
Shinhan Bank Vietnam has been recognized for its high creditworthiness in the local market by successfully issuing bonds, even in a situation with a chilled bond investment sentiment, due in part to a surge in Vietnamese government bond yields due to recent monetary tightening by the U.S. Federal Reserve, the experts say.
“We issued bonds to prepare for the expansion of volatility in the global financial market,” said an official of Shinhan Bank Vietnam. “We are also considering additional issuance as a preemptive response to the diverse financial needs of our local customers in Vietnam.”
Shinhan Bank Vietnam operates 43 sales channels, the largest number of foreign banks in Vietnam, and ranks first among foreign banks in terms of net profits and number of customers among others.
It is also leading digital financial services in the Southeast Asian country by launching mobile-only deposit products and 100 percent digital credit loans.
Shinhan Bank announced on May 12 that it established the S-TBML System to preemptively respond to TBML and strengthen competitiveness in foreign exchange transactions.
Digital Monitoring System for Foreign Exchange Transactions
Shinhan Bank announced on May 12 that it had established the S-TBML System to preemptively respond to trade-based money laundering (TBML) and strengthen competitiveness in foreign exchange transactions.
The S-TBML System detects money laundering and abnormal transactions based on trade and foreign exchange big data.
The system is capable of preventing global sanction risks and abnormal transactions in advance by using various data about foreign exchange transactions, such as checking counterparties and real owners, the examination of special transactions, and the detailed inspection of trade documents.
In 2018, Shinhan Bank developed a digital currency monitoring platform for foreign exchange transactions by utilizing Shinhan DS's digital financial service construction technology based on its trade-based money laundering inspection know-how.
In September of 2021, it also built an automatic economic sanctions detection system by combining artificial intelligence (AI) and optical character recognition (OCR) technologies.
“It is an essential task for banks to check complex global foreign exchange transactions using data and digital technology,” a Shinhan Bank official said.
“We will identify money laundering and abnormal transactions related to trade transactions and prevent risks in advance by continuously upgrading the S-TBML System.”
Business Agreement with FORCA
Shinhan Bank announced on May 13 that it had signed a business agreement with the Korea Foreign Company Association (FORCA) to provide corporate finance services to foreign-invested companies and promote the attraction of foreign direct investment in Korea.
FORCA is a private economic organization representing foreign-invested companies, supporting foreign-invested companies’ investment and management activities and proposing related policies, serving as a bridge between foreign-invested companies in Korea and the Korean government.
Through this business agreement, the two organizations agreed to cooperate in providing financial solutions, such as supporting corporate financial services for foreign-invested companies, jointly holding regular seminars and IR events related to domestic and foreign investment and attracting customers through mutual networks and promoting foreign investment in Korea.
Shinhan Bank will be recognized for its comprehensive financial services related to foreign exchange investment using 165 branches and offices in 20 countries and will act as a foreign transaction advisory bank for the FORCA.
“We expect this business agreement to offer a good opportunity to stimulate foreign investment attraction and provide comprehensive corporate finance solutions to foreign-invested companies in Korea,” a Shinhan Bank official said.
“We will do our best to be their best financial partner while offering various financial services for them.”
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