Korea Housing Finance Corporation Issued Covered Bond Abroad

The Korea Housing Finance Corporation held a ceremony in London, UK on Nov. 24 after issuing a five-year global covered bond of US$500 million on Nov. 19 at a coupon rate of 2.50 percent.

Various institutions such as asset management companies, central banks, sovereign funds, insurers and banks in the United States, Europe and Asia made a bid for its covered bond. The spread was 0.90 percentage points higher than the five-year U.S. Treasury rate, the lowest ever for the covered bonds the corporation issued abroad.

“We are planning to continue to issue bonds abroad in the interest of capital procurement diversification and in view of the high interest in our covered bonds,” the corporation explained, adding, “These bonds will be able to be utilized as means for expanding the long-term fixed-rate amortizing mortgage loans the Korean government is working on as a part of its measure against household debts.”