SUEUN Issues $2 Billion Global Bonds... "First Financial Institution to Include 20-Year Bonds"

Issued Including 20-Year Maturity Long-Term Bonds for the First Time by a Korean Financial Institution

[Asia Economy Reporter Park Sun-mi] The Export-Import Bank of Korea announced on the early morning of the 23rd that it successfully issued global bonds totaling $2 billion to investors worldwide.

The bonds were issued in a triple-tranche structure of fixed-rate bonds consisting of $750 million with a 3-year maturity, $750 million with a 5.5-year maturity, and $500 million with a 20-year maturity.

This is the first time a Korean financial institution has issued 20-year long-term bonds. Issuance of long-term bonds requires mid- to long-term trust in the fundamental strength of the issuing country's economy and the financial stability of the issuing institution. A bank official stated, "The success of the 20-year long-term bond issuance by the Export-Import Bank of Korea is significant as it reconfirms the sound external credibility of the Korean economy and the bank among global investors."

Although the initial target for the global bond issuance was $1.5 billion, orders surged to $5.4 billion, 3.6 times the target, prompting the bank to increase the issuance size to $2 billion.

Despite the global spread of COVID-19, the relatively solid fundamentals of the Korean economy, supported by strong performances in key export sectors such as shipbuilding, semiconductors, and batteries, are cited as factors behind the successful bond issuance. Another factor contributing to the success is the increased preference of overseas investors for Korean bonds as safe assets.

Prior to this issuance, the Export-Import Bank of Korea conducted one-on-one non-face-to-face investor briefings targeting conservative investors who invest in top-tier bonds rated AA or higher. As a result, for the 3-year and 5.5-year maturities, the proportion of central banks, sovereign wealth funds, and international organizations reached nearly 58%, indicating active investment orders from global investors. For the 20-year maturity, the proportion of pension funds, insurance companies, and asset management firms seeking long-term stable investments exceeded 74%.

A bank official said, "With this, the Export-Import Bank of Korea has established grounds to calculate competitive interest rates reflecting market conditions when supporting Korean companies participating in overseas large-scale projects requiring long-term financing of over 10 years," adding, "As a leading domestic foreign currency borrowing institution, the bank plans to diversify borrowing methods and actively attract high-quality investors to achieve stable foreign debt procurement, targeting a total foreign currency procurement of $11 billion this year."

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