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NH Nonghyup Bank Successfully Issues US$500 Million Global Bonds
Successful Issuance of Global Bonds
NH Nonghyup Bank Successfully Issues US$500 Million Global Bonds
  • By Yoon Young-sil
  • July 25, 2018, 12:04
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NH Nonghyup Bank successfully issued US$500 million (567.6 billion won) worth of global bonds with maturities of five years for investors around the world.
NH Nonghyup Bank has successfully issued US$500 million (567.6 billion won) worth of global bonds with maturities of five years.

NH Nonghyup Bank has announced on July 24 that it has successfully issued US$500 million (567.6 billion won) worth of global bonds with maturities of five years for investors around the world.

The bonds have received a credit rating of A1 from Moody's and A+ from S&P and the interest rate of issuance stands at 3.875 percent, which is 22.5 basis points lower than the initial interest rate offered. It is 122.5 basis points higher than the interest rate of 5-year U.S. government bonds.
 

The bond issuance has attracted US$1.6 billion (1.82 trillion won) from 123 institutional investors across the globe. By region, Asian investors accounted for 91 percent of the total, while European and U.S. investors took up 9 percent. By investor type, asset management companies accounted for 33 percent of the total, followed by banks with 39 percent and insurance and securities companies and others with 28 percent.

It is meaningful in that the bank has secured a considerable number of orders from global big investors despite concerns about capital outflow from Asian emerging countries triggered by a trade dispute and exchange rate war between the U.S. and China, according to NH Nonghyup Bank.