Attracting Swiss Investors' Interest
Korea Development Bank announced on April 23 that it has issued Swiss franc-denominated bonds worth about US$310 million to Swiss investors. The five-year bonds were issued with a fixed interest rate.
These bonds are safe assets that can be repurchased at the Swiss Central Bank, and hence attracted Swiss investors’ interest.
Based on solid investment demand, the interest rate was set at the CHF mid-swap rate plus 98bp (1bp = 0.01 percent), down 7 bp from the initially suggested guideline of the CHF mid-swap rate plus 105bp.
"Through the issuance of the Swiss franc-denominated bonds, we have reaffirmed investors' trust in high-quality Korean bonds not only in major markets such as the United States, Europe and Asia, but in niche markets such as Switzerland," KDB said.