Clifford Chance

Clifford Chance advises Hanwha Life Insurance on US$1 billion Subordinated Capital Securities

Leading international law firm Clifford Chance advised Hanwha Life Insurance Co., Ltd. on its issuance of US$1 billion 4.7000% Subordinated Capital Securities. This transaction represents a new record for the 144A/Reg S hybrid security offering by Korean financial companies since the financial crisis in Korea. Hanwha Life is one of the leading life insurance companies in Korea, with an extensive distribution network internationally.

J.P. Morgan, Bank of America Merrill Lynch, Nomura and UBS acted as joint bookrunners and joint lead managers. Hanwha Investment & Securities acted as joint lead manager (Singapore listed).

Partner Hyun Kim led on the deal and was supported by partner Richard Lee, associates Kwangwoo Kim, Jackie Yang and Angela Ryu.

"We are delighted to advise on this landmark transaction for Hanwha Life, which represents the firm's expertise in insurance regulatory capital. This deal is the second international capital securities issuance by a Korean life insurance company aimed at building additional regulatory capital in light of the IFRS 17 implementation scheduled to take effect in 2021 affecting insurance liabilities that will be subject to market valuation," said Hyun, Head of the Korea practice.

In July 2017, the firm advised the underwriters on the first international capital securities issuance recognized as regulatory capital by a Korean life insurance company, the 144A/Reg S hybrid security offering by Kyobo Life Insurance Co., Ltd. in Korea. The transaction was awarded 'Debt & equity-linked Deal of the Year' at the IFLR Asia Awards 2018.