Shinhan Bank announced on Dec. 14 that it has signed a new ESG committed credit line agreement worth 10 billion yen (US$73 million) with Japan’s Sumitomo Mitsui Banking Corp. (SMBC).
The foreign currency committed line is a financing method in which a borrower can receive foreign currency funds within a limit promised in advance from a financial company. It is regarded as a means of securing foreign currency funds stably to respond to financial market volatility and a liquidity crunch.
With the signing of this agreement, Shinhan Bank diversified the currencies in its emergency financing facilities, which included the U.S. dollar, euro and yuan. The lender will have foreign currency committed credit lines worth about US$1.1 billion, the largest among Korean commercial banks.
