Anna Jiwon Park has been covering the politics at The Korea Times since the summer of 2024, when she joined the press pool for the Office of the President in Korea. Prior to that, she spent about five years reporting extensively on financial markets, regulatory authorities and the financial industry. She joined The Korea Times in 2019 after spending eight years as a broadcast journalist at Arirang TV, Korea’s leading global broadcaster, covering politics, defense and culture.
Eximbank sells global bonds worth $1.5 billion at record-low coupon rates
Export-Import Bank of Korea (Korea Eximbank) headquarters located in central Seoul / Courtesy of Korea Eximbank
By Anna J. Park
By Anna J. Park
The Export-Import Bank of Korea (Korea Eximbank) announced Thursday that it has raised $1.5 billion by issuing triple-tranche global bonds to overseas investors. The state-run lender said the triple-tranche bonds' coupon rates were the lowest ever issued by the government, reflecting overseas investors' confidence in Korean debt as a safe asset.
The bonds are composed of three different coupon rates and maturities ― three-year maturity bonds of $500 million, five-year maturity of $700 million and 10-year maturity of $300 million. The three-year notes provide 23 basis points, or 0.23 percent, above the three-year U.S. Treasury; the five-year bond offers 28 basis points above the five-year U.S. treasury, and the 10-year bond gives 38 basis points above the 10-year U.S. treasury note.
The bank said that by offering bonds with various maturity and coupon rates, it could secure high demand from overseas investors. About 51 percent of the bonds were purchased by central banks of various countries, sovereign wealth funds and international organizations.
“The money raised through the bond selling will be used to support local enterprises to advance into overseas markets with various business projects related to the Korean New Deal initiative, particularly in the green, renewable and digital sectors,” the bank said.