Export-Import Bank Issues $500 Million Global Bond Amid COVID-19 Shock

First Successful Korean Bond Issuance Since the Novel Coronavirus Crisis
Lowest Spread Achieved Among Korean Bonds Excluding Government Bonds Since the Financial Crisis

[Asia Economy Reporter Kangwook Cho] The Export-Import Bank of Korea announced on the early morning of the 6th that it successfully issued a total of $500 million in global bonds targeting investors worldwide.

The bank explained that this bond issuance was accomplished amid challenging market conditions.

Due to concerns over the spread of the novel coronavirus infection (Wuhan pneumonia), major stock markets experienced significant declines, and financial markets in Asia, including Hong Kong and China, were unstable. The bank closely monitored the market and seized the moment when the global financial market stabilized and investor sentiment recovered to proceed with the bond issuance.

The global bonds issued on this day are fixed-rate bonds with a 5-year maturity, priced at a level adding 0.475% to the 5-year US Treasury yield. This is the lowest spread among Korean bonds issued since the financial crisis, excluding government bonds.

An official from the bank stated, "Despite the contraction in foreign currency bond issuance due to concerns over a global economic downturn caused by the coronavirus shock, the strong demand from global investors indicates that the bank's bonds continue to secure investors' trust as safe assets." He added, "This successful global bond issuance reaffirmed trust in Korean bonds and paved the way for future foreign currency bond issuances by domestic institutions."

This content was produced with the assistance of AI translation services.