Seoul, South Korea – The Export-Import Bank of Korea (KEXIM) announced today that it has successfully issued a $3 billion global bond, marking the first publicly offered foreign currency bond since the declaration of a state of emergency last month. The successful issuance is seen as a positive sign for South Korea's ability to attract foreign investment despite recent domestic political challenges.
The bond, issued in various tranches, includes a three-year floating-rate note worth $400 million, and fixed-rate notes with maturities of three, five, and ten years, totaling $850 million, $1.25 billion, and $500 million, respectively.
"Despite concerns over the domestic political situation, we are pleased to see that overseas investors continue to show strong support and confidence in South Korea's economic system," said a KEXIM official.
Initially targeting a $2 billion issuance, KEXIM received overwhelming demand from over 400 investors, with total orders reaching up to $10 billion. As a result, the bank decided to increase the issuance size to $3 billion. Furthermore, KEXIM was able to minimize the new issuance premium by pricing the bonds 25 basis points below the initial guidance.
"This successful issuance will serve as a benchmark for other Korean institutions," the official added.
To address concerns among overseas investors regarding the domestic political situation, KEXIM conducted one-on-one investor relations (IR) meetings and online investor presentations. The bank's president also sent letters to overseas investment banks seeking cooperation, and additional explanatory materials on political issues were posted on the KEXIM website.
The funds raised from the bond issuance will be used to support various sectors, including advanced strategic industries, strategic order-winning industries, and climate change initiatives.
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