The korea economic daily

Korea Development Bank (KDB) is planning to raise between $500 million and $1 billion in a dollar bond sale in mid-January, set to become the first South Korean institution to sell a global bond next year, according to investment banking sources on Dec. 15.

KDB recently sent out a request for proposals for the bond issue to global investment banks to select underwriters.

The planned dollar bonds will be issued simultaneously in the US, Europe and Asia. They are expected to set the tone for other new Korean debt to be sold globally next year, as both KDB and Export-Import Bank of Korea (KEXIM) serve as a gauge for global investor interest in South Korean debt.

In October, KDB sold $1 billion bonds in dual tranches at zero interest rate, narrowing their yield spreads with the US Treasuries to 0.4-0.5 percentage points.

KDB's global debt carries the third-highest investment grade of AA among the 10 credit ratings.

In September, the South Korean government issued euro-denominated bonds worth 700 million euros ($827 million) at a negative interest rate, becoming the first non-European country to sell negative-yielding sovereign bonds in the euro. 

KEXIM, Hana Bank, Korean Southern Power Co. and SK Hynix Inc. are lining up for new global bond issues next year.

Write to Jinsung Kim at jskim1028@hankyung.com

Yeonhee Kim edited this article.