Eximbank issues commercial papers worth $1 billion

The headquarters of the Export-Import Bank of Korea in Seoul / Yonhap

By Lee Min-hyung

The Export-Import Bank of Korea (Eximbank) has raised a total of $1.02 billion (1.28 trillion won) by issuing foreign currency-denominated commercial papers in order to provide local firms with easier access to foreign currencies, the state-run lender said Tuesday.

The bank said it issued short-term unsecured promissory notes mostly to institutional investors in Europe amid widening market volatility here in the wake of the coronavirus pandemic.

The move comes as part of its efforts to minimize financial turmoil caused by the substantial plunge in valuations of Korean stocks and currency amid fears that the virus-hit economy will fall into a recession in the near future.

With the local economy showing few signs of a rebound, foreign investors have recently gone on a mass selling spree. This has raised concern over a dollar shortage here. The lender believes its latest decision will help reduce such worries.

“Even if the novel coronavirus outbreak deepens uncertainty and volatility in the local finance market, we have succeeded in issuing the papers overseas,” an official from the Eximbank said. “We will do our best to supply foreign currency to companies here.”