Lee Yeon-woo is a financial journalist at The Korea Times. Her wide range of reporting includes policies, macroeconomics, stock market, companies and even crypto. She is passionate about connecting the dots in Korean finance and making it easier for foreign nationals to understand. Based on her previous experience as a national reporter, she also has a keen interest in social issues within the sector, including gender equality and ESG. Your tips and insights are always appreciated. You can send them to yanu@koreatimes.co.kr.
Eximbank issues $627 mil. bond in Australian market
Headquarters of the Export-Import Bank (Eximbank) of Korea in Seoul / Courtesy of Eximbank
By Lee Yeon-woo
The Export-Import Bank of Korea (Eximbank) said Sunday it has issued a kangaroo bond worth 1 billion Australian dollars ($627 million). The issuance marks the largest-ever kangaroo bond offering by a Korean issuer, tying the record set by Eximbank last year.
A kangaroo bond is a bond issued in the Australian market by non-Australian entities.
The offering consists of AU$800 million in 5-year bonds and AU$200 million in 10-year bonds. The bank said it set a new record for the largest single-maturity issuance among Korean kangaroo bonds by making the 5-year tranche — where investor demand was most concentrated — the primary offering.
With its 10-year tranche, the bank successfully met long-term demand from both domestic and international investors, reinforcing its position as a leading SSA issuer. SSA bonds refer to highly creditworthy debt issued by sovereigns, supranationals and agencies.
The bank said it chose to raise funds in the Australian market as it continues to demonstrate robust investor demand supported by ample liquidity, even amid heightened uncertainties triggered by the recent U.S. tariff war.
To address foreign investors' concerns over the domestic political situation, the bank held one-on-one investor meetings in Australia and Singapore ahead of the issuance, actively engaging with investors to build confidence.
Eximbank also noted that it will continue to closely monitor various nonmajor currency markets, in addition to major currencies like the U.S. dollar and the euro, to secure high-quality foreign currency funding at a competitive cost. Such efforts are also expected to provide a benchmark for other domestic bond issuers.
"Despite ongoing domestic and global uncertainties, the participation of new Australian investors as well as high-quality global institutions, including central banks and asset managers, once again underscored the strong international credit standing of both the bank and Korea," an Eximbank official said. (Advertorial)