Export-Import Bank Issues AUD 650 Million Kangaroo Bonds

Securing Funding Support for Australian Infrastructure Projects by Domestic Companies... Confirming Foreign Currency Procurement Capability
Procured AUD Funds Can Be Directly Provided for Korean Companies' Australian Infrastructure Projects
Composed of AUD 200 Million Fixed-Rate Bonds with 3-Year Maturity and AUD 450 Million Floating-Rate Bonds with 5-Year Maturity

[Asia Economy Reporter Song Hwajeong] The Export-Import Bank of Korea announced on the 30th that it has successfully issued Australian dollar-denominated bonds (Kangaroo Bonds) worth 650 million Australian dollars (approximately 590 billion KRW) in Australia.

This Kangaroo Bond was issued in a dual tranche structure consisting of a 3-year fixed-rate bond of 200 million Australian dollars and a 5-year floating-rate bond of 450 million Australian dollars (dual tranche means issuing two types of bonds simultaneously with different maturities or interest rate conditions).

The Australian dollars raised by the Export-Import Bank of Korea this time will be provided in Australian dollars to a public-private partnership (PPP) infrastructure project in Australia recently contracted by a Korean company. Infrastructure projects typically require significant local currency funding in the host country, so investors or project operators need to prepare local currency.

An official from the Export-Import Bank of Korea said, "The Kangaroo Bond market ranks among the top five in the world in terms of issuance volume in the international bond market. It remains popular due to higher interest rates compared to other advanced countries and has a broad investor base. Even during periods of contraction in the public offering market, we have closely monitored investor demand through various forms of Australian dollar bond issuance such as private placements and structured bonds."

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