Korea Development Bank (KDB) has successfully issued bonds worth $1.5 billion in the global market.
The state-run bank raised US$750 million in 3-year variable interest rate bonds and another US750 million in 5-year fixed interest rate bonds.
The three-year bond carries 0.35 percentage point spread on the three-month London Inter Bank Offered Rate (RIBO), while the five-year bond has a 0.45 percentage point spread on the interest rate of the five-year U.S. Treasury. In particular, the five-year bond was issued with the lowest rate ever since the bank entered the U.S. bond market in 1990, and the lowest rate among Korean papers (excluding government bonds) that have been issued since the 2008 financial crisis.
"Even though foreign bond issuance has shrunk due to the Wuhan coronavirus outbreak, KDB bond sale was 4.1 times oversubscribed and the bank decided to raise US$500 million more than its original goal of US$1 billion,” the bank said. In particular, 37 percent of the bonds were sold to sovereign, supranational and agencies (SSAs), which refer to central banks, international organizations and policy and financial institutions.