Export-Import Bank Issues $2.5 Billion USD Global Bonds Successfully

Achieving the Largest Korean Bond Benchmark in H2 Amid Increased Volatility in International Financial Markets
First Korean Institution to Issue 2-Year Public Bonds

[Asia Economy Reporter Yu Je-hoon] The Export-Import Bank of Korea announced on the morning of the 7th that it successfully issued a total of 2.5 billion USD in global bonds targeting investors worldwide.

The bond issuance on this day was made in multi-tranche with maturities of 2, 5, and 10 years. In particular, the debut public offering of the 2-year bond is evaluated as a strategy that accurately predicted market conditions and investor demand, according to the bank. Also, the issuance size of the 2-year and 5-year bonds was 1 billion USD each, solidifying the bank’s status as an SSA (Supranational, Sovereign, and Agency) issuer.

This bond issuance by the bank was carried out under adverse conditions amid ongoing volatility in the international financial markets. Currently, the global investment market continues to experience confusion in investor sentiment due to persistent tightening policies by major countries in response to global inflation and concerns over economic recession. In fact, the issuance volume by investment-grade (IG) institutions in the international bond market has decreased by 22% compared to the previous year over the past year.

Amid this situation, the bank judged this week?when summer vacations ended and bond issuance, which had been sluggish, is expected to pick up?as the optimal timing and boldly proceeded with the bond issuance, resulting in achieving the largest Korean benchmark bond issuance in the second half of the year.

An official from the bank said, "In a situation where foreign currency bond issuance has contracted due to the Federal Reserve’s full-scale interest rate hikes and concerns over a global economic downturn, the strong demand from global investors indicates that the bank’s bonds continue to secure investors’ trust as safe assets," adding, "This successful global bond issuance reaffirmed trust in Korean bonds and played a role in opening the way for domestic institutions’ foreign currency bond issuance."

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