The Korea Herald


Korea EXIM Bank issues bonds worth $1 billion

By Shin Ji-hye

Published : Aug. 6, 2014 - 21:01

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The Export-Import Bank of Korea said it has issued foreign currency bonds worth $1 billion to investors in the global market on Wednesday.

The bank issued 5-year and 12-year bonds to raise $500 million with each, and their interest rates were 72.5 bps and 85 bps higher than U.S. government bonds, respectively. In particular, the 5-year bond’s interest rate is the lowest since the global financial crisis in 2008, the bank’s official said.

Their interest rates are around 17.5 to 45 bps lower than bonds issued by the Export-Import Bank of China in July, which has the same credit rating as the Korea EXIM Bank.

The bank said it issued bonds with different maturities of five and 12 years in a bid to attract more investment and to set interest rates at an appropriate level amid growing uncertainty due to Argentina’s latest default and geographical risks in Gaza and Ukraine.