Credit Guarantee Fund Issues $300 Million in Overseas Bonds at Record-Low Interest Rate

Published 02 Oct.2025 09:05(KST)

Exterior view of the Credit Guarantee Fund building. Provided by the Credit Guarantee Fund

The Credit Guarantee Fund announced on October 2 that it has successfully completed the issuance of overseas bonds worth 300 million US dollars.

This marks the fifth overseas bond issuance by the Credit Guarantee Fund, and the institution stated that it achieved its best-ever results in both interest rate conditions and investor demand.

After recently analyzing market demand, the Credit Guarantee Fund issued floating-rate bonds, which are preferred by investors, and significantly lowered the funding interest rate. When converted to a fixed-rate bond, the funding cost is equivalent to the three-year US Treasury yield plus 40 basis points (1bp = 0.01 percentage points), which is the lowest level ever, compared to 120 basis points in 2023 and 75 basis points in 2024.

Notably, the Credit Guarantee Fund held its first-ever investor relations session in the Middle East, attracting local policy banks and top-tier investment institutions, thereby expanding its global investor base. As a result, the bond issuance attracted orders totaling 3.16 billion US dollars, the largest in its overseas issuance history.

The interest rate for this issuance is about 16.2 basis points lower than domestic funding, and the reduced funding cost is expected to help lower financing expenses for small and medium-sized enterprises as well as mid-sized companies.

A Credit Guarantee Fund official stated, "Despite challenging external conditions, we were able to issue bonds at lower rates than in the domestic market thanks to our accumulated experience and expertise. Going forward, the Credit Guarantee Fund will continue to prioritize easing interest burdens for companies and will strive to achieve further successful overseas issuances."