KB Securities Solely Underwrites Societe Generale Arirang Bond

KB Securities announced on the 30th that it exclusively underwrote the senior Arirang bond issued by Soci?t? G?n?rale, a France-based global banking group, returning to the Korean market after 7 years.

Soci?t? G?n?rale had not issued bonds domestically since 2015, but by capturing the changed market conditions and leveraging the issuer’s seasoned funding experience along with KB Securities’ extensive expertise in both the domestic and international debt capital markets (DCM), the Arirang bond issuance was successfully completed on the 29th.

An Arirang bond is a won-denominated bond issued in Korea by foreign companies without a Korean address or overseas subsidiaries of domestic companies. KB Securities and Soci?t? G?n?rale carefully analyzed interest rate and exchange rate trends in the Korean, US, and European markets to identify a favorable timing, choosing to issue an Arirang bond to reduce funding costs.

The senior Arirang bond issued this time amounts to KRW 27 billion, with a 10-year maturity and a call option allowing early redemption annually starting from the 7th year. It is a zero-coupon simple interest bond, where interest accumulates on a simple interest basis and principal and interest are paid in a lump sum on the maturity or early redemption date. The bond yield is 5.40% per annum and it is issued in a private placement format.

Soci?t? G?n?rale, the issuer, is a global bank headquartered in France providing a wide range of financial services worldwide. Its international credit ratings and senior corporate bond credit ratings issued in various countries correspond to S&P A rating, Moody’s A1 rating, and Fitch A rating, respectively. The group operates diverse business divisions including corporate finance, retail, and asset management, and explores various funding methods accordingly.

KB Securities, which exclusively underwrote this issuance, has ranked first in the domestic won DCM market for 12 consecutive years (as of the end of 2022, based on Bloomberg) and is a DCM powerhouse holding the top position among Korean securities firms in the Korean international bond (KP) market. Additionally, KB Securities holds the largest track record domestically for kimchi bonds and Arirang bonds issued by foreign companies, such as this issuance.

In particular, KB Securities is known to have continuously built a domestic and international funding base for the issuer in the Korean market through close cooperation with Soci?t? G?n?rale during the issuance preparation process. The issuer plans not to limit this to a one-time issuance but to continuously collaborate with KB Securities, communicate with investors, expand issuance scale in the Korean market, and provide investors with stable and diverse investment opportunities.

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