Supplying Foreign Currency Funds to Korean Firms
The Export-Import Bank of Korea announced on March 23 that it has raised a total of US$1.2 billion since March 19 by issuing commercial papers (CP) in foreign currencies.
A foreign currency denominated commercial paper (CP) is a short-term bond issued by a top-rated financial institution or a company in the foreign financial market for the purpose of raising short-term foreign currency funds.
The bank raised US$1.2 billion in CPs in 3 business days by mainly targeting European institutional investors. The amount broke down to US$300 million in six-month CPs issued on March 19, another US$300 million in nine-month CPs and US$20 million in six-month CPs issued on March 20, and US$400 million in nine-month CPs issued on March 23.
“We have successfully issued CPs overseas although the financial market volatility increased due to the novel coronavirus crisis,” said a bank official. "We will do our best to provide foreign currency funds to domestic companies.”