Korea Development Bank Issues $3 Billion Global Bonds... "First Introduction of SSA Issuance Strategy"

SSA, Used by International Organizations and National Policy Financial Institutions
Composed of $1.75 Billion 3-Year Maturity + $1.25 Billion 5-Year Maturity
First Adoption by a Korean Institution

On the 10th, the creditor meeting of Taeyoung Construction is held at the headquarters of the Korea Development Bank in Yeouido, Seoul. Photo by Younghan Heo younghan@

On the 14th, the Korea Development Bank announced that it has issued a $3 billion global bond targeting top-tier investors such as central banks worldwide by applying the SSA (Sovereigns, Supranationals & Agencies) issuance strategy for the first time domestically. The bank plans to complete the final payment settlement on the 15th.

SSA is an issuance strategy that extends the demand forecasting period and clearly presents the target issuance yield level from the outset, mainly used by international organizations and national policy financial institutions.

This bond was issued in the form of fixed-rate bonds with a dual-tranche structure consisting of a 3-year maturity $1.75 billion tranche and a 5-year maturity $1.25 billion tranche. This issuance is the first time a Korean institution has introduced the SSA issuance strategy, including the presentation of the Initial Price Guidance (IPG) and the extension of the demand forecasting period.

The Korea Development Bank explained that it induced high participation from top-tier investors, mainly from the Americas and Europe, such as central banks and international organizations that prefer the SSA issuance method, and proved that Korean bonds can be issued with the same pricing strategy as high-quality SSAs. The investor ratio increased from 41% based on SSA in October last year to 72% this time. The proportion from the Americas, Europe, and the Middle East also rose from 74% to 82%.

The Korea Development Bank stated, "The introduction of the SSA issuance strategy is not merely a change in the issuance method but signifies pioneering a new market and strengthening the status of Korean institutions' issuances," and added, "Going forward, as a representative policy financial institution, we plan to lead the overseas bond issuance market of Korean institutions by enhancing the perception of Korean bonds as safe assets and establishing benchmarks."

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