S. Korea's Hana Bank plans to raise $1 bil

Asian Economic News, March 6, 2000

SINGAPORE, March 2 Kyodo

South Korea's Hana Bank plans to raise up to $1 billion in funds this year for early repayment of matured loans and expand its investment portfolio, a senior bank official said Thursday.

"We will increase our fund-raising up to $1 billion," Han Kyu Tae, Hana Bank's general manager for international finance, said.

"The actual amount required to replace matured loans is only $630 million. The remaining will be used to expand our investment portfolio," he said.

Hana Bank signed a $250 million loan deal on Thursday with the Singapore branch of BankBoston, Development Bank of Singapore and the Singapore branch of KBC Bank.

The loan, in the form of floating rate notes and transferable loan facilities due in 2003, will be used to repay outstanding loans ahead of schedule.

More than 30 financial institutions took part in the deal.

The amount of loan targeted was originally $200 million but at the close of syndication there was over-subscription of 150%, and so the loan was increased to $250 million.

Han said Hana Bank also plans to upgrade its representative office in Singapore to a branch and expects to obtain approval from the Monetary Authority of Singapore soon.

It also expects its representative office in Shanghai to be upgraded to a branch this year.

Hana Bank is the seventh largest bank in South Korea and one of the country's most profitable.