KB Kookmin Card Issues $500 Million in Overseas Asset-Backed Securities

MUFG and Singapore Development Bank Joint Investor Participation
'AAA' Rating from Fitch

[Asia Economy Reporter Ki Ha-young] KB Kookmin Card announced on the 13th that it has issued $500 million (approximately 600 billion KRW) worth of overseas asset-backed securities (ABS).

The overseas ABS issued this time were backed by credit card receivables as underlying assets, with global banks MUFG and Singapore Development Bank (DBS) participating as joint investors. It received the highest rating of 'AAA' from the international credit rating agency Fitch.

Additionally, currency interest rate swaps (CRS), which exchange principal and interest payments between different currencies, were used to preemptively eliminate risks arising from exchange rate and interest rate fluctuations.

The funds raised through this overseas ABS issuance are planned to be used for repaying existing borrowings and operating funds.

A KB Kookmin Card official stated, "Based on excellent creditworthiness and high asset soundness, we succeeded in raising funds under more favorable conditions compared to domestic financing, even amid increased volatility following the COVID-19 pandemic. We plan to continue diversifying our funding portfolio and making various efforts to reduce funding costs."

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