Export-Import Bank Issues $1.5 Billion Global Bonds at Record Low Spread

Achieving the Lowest Ever Korean Base Interest Rate... "Reaffirming Investor Confidence in Korea"

[Asia Economy Reporter Park Sun-mi] The Export-Import Bank of Korea (hereinafter ‘KEXIM’) announced on the early morning of the 4th that it successfully issued global bonds worth a total of 1.5 billion dollars to investors worldwide.

This global bond issuance recorded the ‘lowest ever spread’ in the history of Korean foreign currency public bonds. It reaffirmed investors’ trust in Korean bonds as safe assets and is evaluated to have presented a favorable market environment for the institution’s future follow-up issuances.

The global bonds successfully issued by KEXIM on this day were structured as a triple tranche (a method of issuing three bonds with different maturities and interest rate conditions simultaneously), consisting of 500 million dollars with a 3-year fixed rate, 700 million dollars with a 5-year fixed rate, and 300 million dollars with a 10-year fixed rate.

The spread was determined by adding 0.23% to the 3-year US Treasury yield for the 3-year bonds, 0.28% to the 5-year US Treasury yield for the 5-year bonds, and 0.38% to the 10-year US Treasury yield for the 10-year bonds.

It was understood that investors participating in AA-rated or higher top-tier bonds were active, with central banks, sovereign wealth funds, and international organizations from various countries accounting for 51% of the total.

A KEXIM official stated, “We captured a favorable timing for bond issuance due to abundant market liquidity and robust global investment sentiment, securing strong demand from global investors by offering various maturities,” adding, “The proceeds from this issuance will be actively used to support the overseas expansion of K-New Deal industries, which are future growth engines such as the Green New Deal industry and the Digital New Deal industry.”

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