Korea Investment & Securities Successfully Issues $600 Million Foreign Currency Bonds

[Asia Economy Reporter Junho Hwang] Korea Investment & Securities, a subsidiary of Korea Financial Group, announced on the 13th that it successfully issued foreign currency bonds worth $600 million.

The bonds issued this time are the first foreign currency bonds ever issued by Korea Investment & Securities. They are 3-year and 5-year maturity bonds, each worth $300 million. The interest rates were set at 1.49% (3 years) and 2.13% (5 years) by adding a spread of 110bp (1bp=0.01%) to the US 3-year Treasury yield and 135bp to the US 5-year Treasury yield, respectively.

This is the first time among domestic private financial companies to issue foreign currency bonds with two tranches (bonds issued in separate parts with different maturities and interest rates). The funds raised will be used to increase capital in Korea Investment & Securities’ local subsidiaries in Hong Kong, the United States, Vietnam, and other locations.

The amount of funds raised exceeded the planned issuance amount by more than 4.8 times, with over $2.9 billion coming in, which allowed the interest rate to be lowered by more than 30bp compared to the initially proposed rate.

A Korea Investment & Securities official said, "This has become an opportunity to be recognized for Korea Investment & Securities’ profitability and stability in the global market," adding, "We plan to establish a foundation for stable foreign currency procurement in the future and strengthen our global investment banking (IB) business."

The bond issuance was underwritten by Citigroup Global Markets Securities, HSBC, BNP Paribas, CS, and KIS Asia.

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