KB Kookmin Card Issues Overseas Asset-Backed Securities to Expand Inclusive Finance

KB Kookmin Card announced on April 29 that it has successfully issued USD 500 million worth of social asset-backed securities (ABS) in overseas capital markets.

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KB Kookmin Card stated that, through this asset-backed securities issuance backed by credit card receivables as underlying assets, it has raised approximately KRW 740 billion in foreign currency. HSBC Hong Kong and ING Bank jointly led the transaction, which was issued in two tranches with average maturities of two and three years, respectively.

The funds raised will be hedged against exchange rate and interest rate fluctuations through currency interest rate swaps (CRS), thereby securing both stability and liquidity. Through this, KB Kookmin Card will diversify its global funding base and strengthen its foreign currency liquidity management capabilities.

The funds raised are planned to be used for inclusive finance programs such as expanding medium-interest loans for mid- and low-credit customers and supporting vulnerable groups with limited financial access.

A representative from KB Kookmin Card said, "Successfully issuing under competitive terms despite high volatility in global markets is an achievement based on the trust of our investors," adding, "We will continue to diversify our funding base and expand inclusive finance initiatives in the future."

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