Samsung Life Insurance issues record $1.5b overseas hybrid bond

Samsung Life Insurance announced Tuesday that it has completed the largest overseas hybrid bond issuance ever by a Korean insurer.

The company disclosed that it issued $1.5 billion (2 trillion won) in 30-year hybrid bonds in overseas markets, with a final coupon rate of 6.875%.

The deal came amid heightened uncertainty in global financial markets. Rising volatility in US government bond yields and ongoing oil price instability had led many global issuers to delay or withdraw their bond issuance plans.

Despite the market chill, Samsung Life Insurance proceeded with the full $1.5 billion it had originally planned — the largest single issuance on record in the domestic insurance industry. The company said the transaction reaffirmed its credibility in global capital markets.

The investor composition was also notable. Premium long-term investors from the United States, Europe and other global markets accounted for 49% of the book, the highest overseas quality capital ratio ever recorded for a hybrid bond issued by a Korean insurer.

Samsung Life said it plans to use the proceeds to strengthen its capital adequacy. "We intend to use the funds raised to proactively bolster our capital soundness indicators, while maintaining a stable shareholder return policy and securing new growth engines over the medium to long term," a company official said.