KB Kookmin Bank Issues USD 700 Million Senior Global Bonds

KB Kookmin Bank announced on April 28 that it had issued senior global bonds totaling USD 700 million (approximately KRW 1.0315 trillion) on April 27.

Exterior view of KB Kookmin Bank New Building in Yeouido, Seoul. Kookmin Bank

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The issuance consists of USD 300 million (about KRW 442 billion) in three-year floating-rate notes and USD 400 million (about KRW 589.5 billion) in five-year fixed-rate notes.

KB Kookmin Bank explained that, despite heightened volatility in global financial markets due to the Middle East war, it identified the optimal timing for issuance. The bank highlighted that it achieved a meaningful milestone by successfully issuing the bonds with a negative new issuance premium for the first time since the war began.

The interest rates were set at 48 basis points (1bp = 0.01 percentage point) above the Secured Overnight Financing Rate (SOFR) for the three-year notes, and 33 basis points above the five-year U.S. Treasury yield for the five-year notes.

Both bonds recorded the lowest spread (additional interest rate) ever for commercial banks and for KB Kookmin Bank.

KB Kookmin Bank engaged with investors in markets such as Taiwan, Hong Kong, and Singapore to gauge market trends. By attracting participation from 179 institutions, the bank secured orders worth approximately USD 4.9 billion (about KRW 7.221 trillion).

A KB Kookmin Bank official stated, "Even amid ongoing geopolitical uncertainty, we successfully completed the issuance at a competitive interest rate at the optimal time through strategic investor engagement, leveraging our strong portfolio, high profitability, and stable asset quality."

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