Industrial Bank Issues $1.5 Billion Global Bonds

[Asia Economy Reporter Jo Gang-wook] The Korea Development Bank announced on the 11th that it has issued global bonds totaling 1.5 billion USD to investors worldwide.

The bonds issued this time consist of a dual-tranche structure with a 3-year maturity floating rate bond of 750 million USD and a 5-year maturity fixed rate bond of 750 million USD. A dual-tranche is a method of issuing two bonds simultaneously with different terms such as maturity and interest rates.

The Korea Development Bank explained, "Despite the contraction of overseas bond issuance due to the coronavirus crisis, we attracted effective orders approximately 4.1 times the issuance amount, increasing the issuance by 500 million USD from the initial target of 1 billion USD."

In particular, the 5-year bond was issued at the lowest spread since the Korea Development Bank entered the US issuance market in 1990. This is the lowest level among Korean bonds issued after the 2008 financial crisis (excluding government bonds).

A Korea Development Bank official said, "Despite the recent volatility in global financial markets, the bonds were recognized as AA-rated safe assets, reaffirming the high interest and trust of global investors. We successfully attracted investments from 144 institutions worldwide, including central banks and international organizations, with more than 37% of total orders coming from SSA investors."

SSA (Sovereign, Supranational & Agencies) refers to central banks, international organizations, and policy financial institutions of various countries.

The Korea Development Bank official expressed expectations that "through this issuance, we can grasp overseas investors' trends regarding Korean bonds and present benchmark interest rates for 3-year and 5-year maturities, thereby creating a favorable issuance environment for domestic institutions preparing for overseas bond issuance."

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