KB Kookmin Bank Issues $500 Million Subordinated Sustainability Bonds

10-Year Fixed Interest Rate... Foreign Currency Subordinated Bonds for COVID-19 Response

[Asia Economy Reporter Park Sun-mi] KB Kookmin Bank announced on the 29th that it has successfully issued $500 million worth of 10-year fixed-rate foreign currency subordinated bonds in response to COVID-19.

The issuance rate was set at 2.518%, which is the US 10-year Treasury yield plus 175 basis points, and the bonds will be listed on the Singapore Exchange. A total of 135 institutions participated, securing orders exceeding $2.6 billion, which is five times the issuance amount, and the spread was also reduced by 30 basis points compared to the initially proposed rate (initial guidance).

Despite increased volatility in the global financial markets due to the resurgence of COVID-19 in the US and Europe and the US presidential election issues, strong demand from global investors was driven by Korea’s high external creditworthiness and the sound credit quality of domestic banks.

The proceeds from the issuance will be used not only to improve KB Kookmin Bank’s capital adequacy but also for eco-friendly and social projects under the sustainable finance management system, continuing support for small and medium-sized enterprises and small business owners affected by COVID-19.

Following the issuance of Korea’s first COVID-19 response dollar-denominated public bond in April and the issuance of the first euro-denominated covered bond by a domestic commercial bank in sustainable bond form in July, this issuance marks the first subordinated bond of the year issued as a COVID-19 response sustainable bond, solidifying KB Kookmin Bank’s leading position in the Korean overseas bond issuance market and its status as a major issuer in the global ESG (environment, social, governance) market.

A KB Kookmin Bank official stated, “This issuance attracted strong interest from global investors based on KB Kookmin Bank’s excellent business performance and solid asset soundness despite concerns over economic recession due to the spread of COVID-19,” adding, “Including this issuance, we have issued three foreign currency sustainable bonds this year alone, reinforcing our position as a leading bank in practicing ESG management.”

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