Korea Export-Import Bank Raises 750 Million Euros through Bond Sale

The Export-Import Bank of Korea announced on July 4 that it has successfully raised 750 million euros (US$873.19 million or 975.35 billion won) by selling bonds on June 3 (local time).

These are the first euro-denominated bonds issued by a South Korean organization this year. Teh bank has succeeded in issuing euro-denominated bonds for three years in a row since 2016. Thanks to reduced geopolitical risks on the Korean Peninsula, the bank could attract a considerable number of big-time investors and minimize a new issue premium (NIP).

The bank issued US$1.5 billion (1.68 trillion won) worth of US dollar-denominated global bonds in May and 120 billion yen (US$1.09 billion or 1.21 trillion won) worth of Samurai bonds in June. With the latest issuance of 750 million euro-denominated bonds (US$873.19 million or 975.35 billion won), it has succeeded in the large-scale bond issuance in the G3 currency markets.

The bonds will mature five years later. Their yield is 0.693 percent which is five-year euro mid-swap interest rate of 0.263 percent plus an added interest rate of 0.43 percent. A total of 68 investors took part in issuing the bonds. By investor, central banks and international organizations accounted for 48 percent. Asset management companies took up 29 percent, followed by pension funds and insurance companies at 12 percent and banks at 11 percent.