Industrial Bank Issues CHF 300 Million Swiss Franc-Denominated Bonds

[Asia Economy Reporter Kangwook Cho] Korea Development Bank (President Lee Dong-geol) announced on the 23rd that it has issued Swiss franc-denominated bonds worth CHF 300 million (approximately USD 310 million) targeting Swiss investors.

The bonds were issued as 5-year fixed-rate bonds.

Despite the recent volatility in the global financial markets, Korea Development Bank re-entered the Swiss market after about two years since May 2018, diversifying its funding base.

In particular, these issued bonds are safe assets eligible for repurchase (Repo) in front of the Swiss National Bank, confirming strong interest from Swiss investors.

The issuance rate was set at 98 basis points, reduced by 7 basis points from the initially proposed guideline (Initial Price Guidance) of CHF Mid-Swap Rate + 105 basis points, based on solid investment demand.

Korea Development Bank explained that through this issuance, it reaffirmed investors' positive investment stance toward overseas public bonds issued by domestic institutions.

Since Korea Development Bank's USD 500 million public bond issuance on the 7th, overseas public bond issuances by Korean institutions such as Shinhan Bank and the Export-Import Bank of Korea have been accelerating.

A Korea Development Bank official stated, "With this Swiss franc-denominated bond issuance, we reaffirmed investors' trust in high-grade Korean bonds not only in major markets such as the US, Europe, and Asia but also in niche local markets like Switzerland."

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