The First Korean Brokerage to Issue Overseas Bonds

Mirae Asset Daewoo said on Nov. 1 that it successfully issued US$300 million worth of U.S. dollar-denominated bonds on Oct. 31.

This is the first time a local brokerage has issued foreign currency-denominated corporate bonds, Mirae Asset Daewoo said.

The three-year bonds carry a spread of 135 basis points over three-year U.S. Treasury notes. A basis point equals 0.01 percentage point.

Mirae Asset Daewoo said the bonds were three times oversubscribed, showing strong demand for its debt sale. The company is planning to use the proceeds from the debt issuance for overseas investment.

An investment bank official said the debt sale has been successful, considering the low interest rate on the bonds, the difficult market environment and the fact that it was the first overseas bond issue by a local brokerage.

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