Export-Import Bank Successfully Issues 700 Million AUD Kangaroo Bonds

First Kangaroo Bond Issuance by an Asian Institution Since COVID-19 Spread
"Strong Reaffirmation of Trust in KEXIM Bonds... Will Diversify Funding Base"

[Asia Economy Reporter Kangwook Cho] The Export-Import Bank of Korea announced on the 21st that it has successfully issued Kangaroo Bonds worth 700 million Australian dollars (approximately 460 million US dollars).

Kangaroo Bonds are Australian dollar-denominated bonds issued by foreign institutions in the Australian capital market. Since the outbreak of the novel coronavirus disease (COVID-19) this year, the Export-Import Bank of Korea is the first Asian institution to successfully issue Kangaroo Bonds.

Having closely monitored the Australian market to diversify its funding sources, the bank promptly initiated the issuance of Kangaroo Bonds as investor sentiment recovered and bond issuance resumed in the Australian market.

Since issuing Kangaroo Bonds for the first time in 2012, the Export-Import Bank of Korea has issued a total of 4.8 billion Australian dollars in Kangaroo Bonds, the largest amount among Asian institutions, establishing itself as a major issuer in the Australian market.

This Kangaroo Bond was issued in a dual tranche structure consisting of a 3-year floating rate note of 500 million Australian dollars and a fixed rate note of 200 million Australian dollars. Dual tranche refers to issuing two types of bonds simultaneously with different maturities or interest rate conditions.

A total of 57 investors placed orders amounting to 1.7 billion Australian dollars for the bond issuance, enabling the bank to issue the bonds at a rate more than 10 basis points competitive compared to US dollar-denominated bonds.

An official from the Export-Import Bank of Korea stated, "Despite ongoing financial market instability following the spread of COVID-19, we have successfully issued foreign currency public bonds three times this year, reaffirming investors' trust in the bank's bonds as safe assets. We will actively utilize niche markets such as Australian dollars alongside US dollars and euros to diversify our funding base and strive to secure stable funds in a timely manner."

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