Kangaroo Bond
Industrial Bank of Korea (IBK) issued an AUD-denominated bond worth AUD350 million (US$273 million).
The bond has a maturity of five years with a fixed interest rate of 3.25 percent, which is the lowest among all fixed-rate kangaroo bonds issued by Korean institutions.
The initial offer had been the three-month swap rate+115 bp (area), but the investment demand of over AUD570 million (US$445 million) resulted in a 3 bp fall. This is equivalent to the three-month Libor rate+75 bp.
IBK is planning to make use of the procured funds to help small exporting firms. Earlier, IBK issued another kangaroo bond worth AUD350 million with a maturity of three years in Feb. 2012, which was a first for a Korean financial institution.
matthew
matthew.weigand@gmail.com