New Album, $300 Million Overseas Bond Issuance... First Entry into the US Market

The Korea Credit Guarantee Fund (KODIT) announced on the 3rd that it issued $300 million worth of overseas bonds on the 29th of last month.

This is the third time KODIT has issued overseas bonds since its first issuance in May 2022. Until last year, KODIT issued overseas bonds targeting investors in Asia and Europe, but this year it expanded its investor pool to include the United States.

Through this stable global investor portfolio, KODIT increased its negotiating power on interest rates and allocated about 30% of the volume to U.S. investors, solidifying its position as a global issuer.

Additionally, KODIT secured orders nearly seven times the issuance volume from top-tier investors, including central banks of various countries and international organizations, finalizing issuance terms with a spread lower than initially expected by the market. The reduced issuance interest rate is expected to lead to lower financing costs for small and medium-sized enterprises (SMEs) and mid-sized companies utilizing the overseas bond issuance amount.

KODIT also plans to assist SMEs and mid-sized companies struggling with prolonged high interest rates by lowering guarantee fees related to overseas bonds, thereby helping secure liquidity and easing financial burdens. A KODIT official stated, “Despite the interest rate gap between Korea and the U.S., securing investors in the U.S. market and issuing bonds under more favorable conditions compared to domestic ones is evidence of the increased market evaluation of KODIT’s overseas bonds. With the confirmed global success of KODIT’s overseas bonds, we will expand overseas issuances in the future to diversify investors and reduce funding costs, continuously lowering companies’ interest burdens.”

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