SEOUL-- Shinhan Card Co., a major South Korean credit card company, said Friday that it has sold US$400 million worth of asset-backed securities (ABS) amid rising borrowing costs.

The dollar-denominated securities are sold on underlying assets of account receivables, the money that customers owe to the credit card company. They have a maturity of four years on average.

Proceeds will be used to pay back debts coming due and cover operation costs, Shinhan Card said.

The company said the ABS were sold at about 0.9 percentage point lower than market rates here.

The latest ABS sales came amid expectations that borrowing costs will continue to rise in line with fast global monetary tightening aimed at reining in soaring inflation pressure.

Source: Yonhap News Agency