Industrial Bank Issues $2 Billion Global Bond

On the 18th, the Korea Development Bank announced that it issued a total of USD 2 billion in global bonds to investors worldwide on the 16th. The bonds were issued as USD 1 billion with a 3-year maturity (USD 700 million fixed, USD 300 million floating), USD 500 million fixed with a 5-year maturity, and USD 500 million fixed with a 10-year maturity.

Photo by Moon Honam, KDB Industrial Bank archive / Moon Honam munonam@

Despite unfavorable market conditions, the Korea Development Bank reduced the spread by up to 35 basis points (1bp=0.01%) compared to the Initial Price Guidance (IPG), and successfully issued the 3- to 5-year bonds at competitive rates compared to the secondary market yields, reaffirming the high interest and trust of global investors.

Moreover, amid geopolitical risks originating from the Middle East and increased volatility in U.S. Treasury yields, the bank successfully attracted investor orders amounting to three times the issuance size based on the perception of Korean bonds as safe assets. Additionally, 41% of investors were top-tier investors such as central banks and international organizations from various countries, solidifying the bank’s status as an AA-rated SSA (Sovereign, Supranational, and Agency) institution including central banks, international organizations, and policy financial institutions.

The Korea Development Bank stated, "Going forward, as a leading policy financial institution, we plan to establish benchmarks for Korean bonds to create a favorable issuance environment for Korean institutions."

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