KB Kookmin Card Indonesian Subsidiary Successfully Issues 88 Billion KRW Public Bonds

The First Korean Non-Bank Institution to Enter Indonesia

[Asia Economy Reporter Yu Je-hoon] KB Kookmin Card announced on the 25th that its overseas subsidiary, KB Finansia Multi Finance (KB FMF), successfully issued public bonds worth 1 trillion rupiah (approximately 88 billion KRW) on the 22nd.

The corporate bonds issued this time mark the first local currency public bond offering by a Korean multi-finance company operating in Indonesia. The total funds raised reached 3.153 trillion rupiah, more than three times the initial target amount of 1 trillion rupiah, resulting in a successful demand forecast.

The bonds issued by KB FMF consist of 1-year and 3-year maturities, and the raised funds will be used for operating capital such as auto and motorcycle secured loans, durable goods installment financing, and IT infrastructure investments.

With this public bond issuance, KB FMF has established a foundation to grow into a top 5 company in the Indonesian multi-finance industry by securing local subsidiary’s own funding capabilities. A KB Kookmin Card official stated, "Despite the recent sharp decline in corporate bond demand due to increased market volatility caused by global inflation and the handicap of being the first public bond issuance, the successful issuance is even more meaningful," adding, "In addition to the excellent external credibility as an affiliate of KB Financial Group, a leading financial institution in South Korea, the strong growth and asset soundness recorded by KB FMF drew positive responses from local investors."

Meanwhile, as of the end of March, KB FMF’s total assets reached 5.9281 trillion rupiah, a 95% net increase compared to July 2020 when it was incorporated as a subsidiary of KB Kookmin Card (3.0403 trillion rupiah), and the average transaction amount more than doubled.

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