[THE INVESTOR] Standard Chartered Bank Korea said on Jan. 17 it has secured investment worth 100 billion won (US$89.14 million) from its parent company for the first time in 11 years.
During its board of directors meeting, the lender approved a structural improvement plan that calls for the issuance of 10-year subordinated bonds worth 600 billion won. After being issued later this month, the debt will be wholly taken over by the British banking group, Standard Chartered.
Subordinated bonds refer to debts that yield higher returns to investors but have the lowest priority of being redeemed with no state-backed deposit protection in case the issuer faces liquidation.
The bank also approved the delivery of 500 billion won to the parent firm as interim dividends for 2019, according to its officials.
The latest decision is expected to improve the bank’s capital adequacy ratio, which is a key barometer of financial soundness that measures the proportion of a bank‘s capital to its risk-weighted credit, as well as its profitability, according to market watchers.
By Song Seung-hyun and newswires (firstname.lastname@example.org)