KEXIM bank issues $3.5 billion in foreign currency bonds

The Export-Import Bank of Korea on Thursday said it issued a record-high $3.5 billion in global bonds to investors worldwide.

The government-run bank on the day before issued three-year foreign currency bonds worth $1 billion, five-year bonds worth $1.5 billion and 10-year bonds worth $1 billion dollars in US dollar terms. The amount is the largest for foreign currency bonds issued to foreign investors by a domestic financial institution excluding the government.

By region, bond investors in Asia accounted for 37%, those in Europe and the Middle East 32%, and those in the US 31%. By sector, pension funds, insurers and asset management companies accounted for 46% but banks with 29% and international organizations and central banks with 25% also had a significant presence.

Due to the high subscription multiple of 4.9, the final issuance interest rate was lowered by 35 basis points, with one basis point equal to a 1/100th of a percentage point, from the initial offer for each maturity, minimizing the new issuance's premium.

The $1 billion in 10-year global bonds were issued in the form of Korea's first blue bond, or a special-purpose bond limited to use in marine ecosystem-friendly projects.

Write to In-Hyeok Lee at twopeople@hankyung.com