NH Investment & Securities Successfully Issues First Ever $300 Million Bond Since Establishment

[Asia Economy Reporter Lee Seon-ae] NH Investment & Securities announced on the 30th that it successfully issued $300 million worth of dollar bonds.

This bond issuance is NH Investment & Securities' first foreign currency bond issuance, with a 5-year maturity and a size of $300 million. The interest rate was set at 2.007%, adding a 100bp spread to the 5-year U.S. Treasury yield. Notably, this issuance attracted significant market attention as it was the first issuance in the Asian dollar market excluding Chinese bonds since concerns over China's Evergrande (恒大, Ebeogeuraendeu) intensified.

Moreover, the bond issuance faced concerns due to the U.S. tapering (asset purchase reduction) issue coinciding with the demand forecast on the 29th. However, it received orders exceeding four times the issuance amount from Asian and European investors, allowing the bonds to be issued at a rate 25bp lower than the initially proposed rate (IPG).

This is the lowest interest rate among 5-year dollar bonds issued by domestic securities firms, attributed to NH Investment & Securities holding the highest global credit rating (S&P A-, Moody’s A3) among mega investment banks and the investors' accumulated understanding of the Korean securities industry.

An NH Investment & Securities official stated, “Despite this being our first dollar bond issuance and occurring during a period of increased volatility, the successful issuance confirmed the high interest of global investors in the Korean securities industry,” adding, “The funds raised through this bond issuance will be used to secure foreign currency liquidity and for overseas investment resources.”

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