Global Bond Issuance
The Export-Import Bank of Korea (Korea Eximbank) announced on January 19 that it succeeded in issuing global bonds worth US$1.5 billion (1.77 trillion won) for investors worldwide.
The global bonds have a triple-tranche structure consisting of fixed-rate bonds of US$500 million (589 billion won) with three-year maturities, fixed-rate bonds of US$500 million (589 billion won) with five-year maturities and variable-rate bonds of US$500 million (589 billion won) with five-year maturities.
The interest rate of the fixed-rate global bonds with three-year maturities is set by adding 0.7 percent point to the interest rate of U.S. government bonds with three-year maturities, while that of the fixed-rate bonds with five-year maturities has increased by 0.925 percent point from the interest rate of U.S. government bonds with five-year maturities. Also, the interest rate of the variable-rate bonds with five-year maturities is set by adding 0.875 percent point to the three-month LIBOR interest rate.
Korea Eximbank has issued the bonds for the first time this year and received US$2.8 billion (3.3 trillion won) orders from 237 investors. In particular, the bank has secured blue-chip investors, such as central banks and pension funds around the world and international organizations, as firm anchor investors.
Korea Eximbank plans to spend foreign capital, which is secured by the latest bond issuance, on supporting the traditionally strong industries and services, such as overseas construction and plants, and developing overseas markets of new growth engine industries, including energy. The bank will actively use various loan means to raise foreign capital worth US$11 billion (12.96 trillion won) this year.