IBK Issues USD 1 Billion Global Bonds, Sets Record Amid Middle East Uncertainty

"Record-High Issuance and Lowest-Ever Spread Achieved"

IBK Industrial Bank of Korea announced on the 17th that it has successfully issued global bonds totaling USD 1 billion.

Euljiro Industrial Bank of Korea Headquarters, Jung-gu, Seoul. Industrial Bank of Korea

This issuance marks the first Korean paper offering since Israel conducted an airstrike on Iran on the 13th.

Through this issuance, IBK raised USD 500 million in 3-year floating rate notes and USD 500 million in 5-year fixed rate notes, securing a total of USD 1 billion in a single offering?the largest amount ever for the bank.

The 3-year notes were priced at a spread of 58 basis points (1bp = 0.01 percentage point) over the Secured Overnight Financing Rate (SOFR), while the 5-year notes were priced at a spread of 47 basis points over the 5-year U.S. Treasury yield. Both tranches set record-low spreads for the second consecutive year.

IBK explained that, despite increased market volatility due to armed conflict in the Middle East, it made a bold and preemptive decision to issue the bonds in anticipation of the possibility that such issues could become prolonged.

The bank reported that, by adopting a dual-tranche structure to attract a wide range of investors, it achieved strong demand with orders totaling USD 8.1 billion?the largest ever?making the issuance a success.

An IBK official stated, "Through meticulous market monitoring, we were able to identify the optimal timing and best strategy, which enabled us to set a new record for demand. It is especially meaningful that, even amid geopolitical risks, we have reaffirmed the solid standing of Korean paper based on our strong credit rating as a policy bank."

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