Kookmin Bank Issues KRW 500 Billion Sustainable Perpetual Subordinated Bonds
5 Trillion Won Issuance Increased by 150 Billion Won to 500 Billion Won
[Asia Economy Reporter Park Sun-mi] KB Kookmin Bank announced on the 2nd that it has issued 500 billion KRW worth of Korean won amortizing contingent convertible bonds (subordinated bonds).
The bonds issued this time successfully attracted a total of 720 billion KRW in bids during the demand forecast conducted on the 19th of last month amid high market interest, based on KB Kookmin Bank's external credibility and financial stability. Accordingly, KB Kookmin Bank decided to increase the issuance to 500 billion KRW, 150 billion KRW more than originally planned.
The bonds have a maturity of 10 years, and the issuance interest rate was set at 2.26% per annum, which is the 10-year government bond yield plus 41 basis points. The issuance spread is the lowest among all Korean won subordinated bonds issued by commercial banks to date.
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A KB Kookmin Bank official stated, “We issued sustainable subordinated bonds as part of efforts to improve the BIS ratio and ESG (Environmental, Social, and Governance) management policies,” adding, “The funds raised this time will be used in ESG areas such as supporting small and medium-sized enterprises struggling due to COVID-19.”
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