Shinhan Bank

Dear valued customers,

Shinhan Bank Vietnam Limited (“Shinhan Bank”) would like to send our sincere thanks to customers for trusting and using our products and services. 

By this letter, we would like to inform the cessation of LIBOR* as follows:

1. On 5 March 2021, the Financial Conduct Authority (FCA) officially announced that LIBOR settings for all currencies which have been benchmark for foreign currency loans, derivatives will cease to be provided after 30 June 2023.

2. In specific, to be in line with the change mentioned above, Shinhan Bank would like to inform customers on our plan regarding LIBOR cessation as follows:

3. Benchmark transition will affect contracts, agreements or services (“Contracts”) between customers and Shinhan Bank referencing to LIBOR. For continuity of the existing Contracts during LIBOR transition, it may be necessary for Shinhan Bank and customers to amend the Contracts on interest terms and/or to supplement fallback terms properly. In the coming time, our branches shall directly contact with customers for more detailed information and guidance.

4. Besides the Item 3 above, please kindly be fully aware of potential considerations in relation to Contracts referencing LIBOR as bellows:

• LIBOR may not continue to be applicable to interest calculations in existing Contracts.
• When LIBOR is discontinued, Contracts need to be transitioned to a benchmark replacement rate.
• A spread adjustment is necessary to reflect differences in credit risk and tenor expressed between LIBOR and a benchmark replacement rate. (Even after the spread adjustment, a benchmark replacement rate may not be economically equivalent to LIBOR)
• A transition to a benchmark replacement rate may have adverse impact on the financial conditions of both customers and Shinhan Bank.
• A transition to a benchmark replacement rate may lead to unexpected results.

Shinhan Bank would like to accompany with customers during LIBOR transition, undertake customers’ benefits when using our bank’s products and services.

Shinhan Bank hereby would like to thank customers and look forward to receive customers’ trust and interest in the future.

*LIBOR is a benchmark interest rate at which leading banks on the London money market Lend to one another. It has been the dominant reference rate for many adjustable-rate loans, including foreign currency loans, and financial instruments traded on global financial markets.

Sincerely,

Shinhan Bank Vietnam Limited