Korea Development Bank Issues Kangaroo Bonds Worth 430 Billion KRW
[Asia Economy Reporter Park Sun-mi] On the 19th, the Korea Development Bank announced that it issued Kangaroo bonds worth 500 million Australian dollars (approximately 428 billion KRW) in the Australian bond market.
The bonds were issued in a dual tranche structure (issuing two bonds simultaneously with different conditions such as maturity and interest rates) consisting of 3-year maturity floating and fixed bonds. The floating bond interest rate is set at 0.62 percentage points above the Australian interbank benchmark rate, and the fixed bond interest rate is 0.8325% per annum. The proceeds from the issuance will be used to support domestic companies struggling due to the COVID-19 pandemic and for overseas business funding.
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A Korea Development Bank official stated, "While closely monitoring the Australian bond market to diversify our funding base, we were able to issue Kangaroo bonds at the lowest interest rate among Asian institutions this year," adding, "we confirmed a steady recovery in the spread of Korea Development Bank bond issuance and positive investor sentiment toward the bank since the COVID-19 outbreak."
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