KB Capital Issues $300 Million Global Foreign Currency Bonds

KB Capital announced on September 30 that it has issued foreign currency bonds (Korean Paper) worth 300 million dollars (approximately 420 billion won).

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The company highlighted the significance of this issuance, stating, "We have returned to the foreign currency bond market after five years."

This issuance was conducted in the form of unsecured senior bonds (RegS).

The purpose of the issuance is to refinance existing maturing bonds, expand the investor base, and diversify funding channels.

Global financial institutions such as KB Securities, Citigroup Global Markets Securities, and HSBC participated as joint lead managers.

Prior to the issuance, KB Capital held a roadshow earlier this month targeting major investors in Hong Kong and Singapore.

In particular, on September 25, the company maintained its 'A3 (Stable)' credit rating from the global credit rating agency Moody’s.

According to KB Capital, Moody’s gave high marks for the potential support from KB Financial Group, the stable business structure centered on auto finance, asset soundness, and risk management capabilities.

The same rating was assigned by Moody’s to this foreign currency bond issuance.

Within just one hour of the book-building process, orders exceeded 1 billion dollars (approximately 1.4 trillion won). Orders from 135 institutional investors reached up to 3.4 billion dollars (approximately 4.8 trillion won).

Based on strong investor demand, KB Capital was able to lower the final spread by 37 basis points (1bp = 0.01 percentage point) compared to the initial price guidance (IPG). The company achieved a negative new issue premium (NIP), securing more competitive funding terms than in the domestic market.

Bin Joongil, CEO of KB Capital, stated, "This issuance is a result based on investor trust and has laid the foundation for sustainable growth in the global market. As a specialized credit finance company within the group, we will continue to enhance our presence in the global capital market."

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