On June 22, Chairman Dongsoo Kim of Korea Eximbank, reported that the Bank has successfully issued US dollar-denominated bond with a face value of USD 1.25 billion.

For the first time among Korean institutions, except the Korean government, since the collapse of Lehman Brothers, Korea Eximbank succeeded in issuing dollar-denominated bond with maturity of 10 years.

The interest rate is around 1.98% more than the US national bond rate of return, the number which is similar to the spread (1.95%) of the US dollar bond with maturity of 5.5 years that Korea Eximbank issued in last March.

※ Commonly, if the bond's maturity is longer, then the interest rate increases. Therefore, the fact that the interest rate of the bond with maturity of 10 years is similar to that of the bond with maturity of 5.5 years means that the bond with maturity of 10 years is issued in better condition.

Korea Eximbank reported, "due to the increase in investors' interest in this bond, the demand for this bond amounted to USD 3.5 billion, which was more than the triple of the previously scheduled amount of 1 billion," and, "Therefore, because of higher responses than expected, we decided to increase the amount to issue."

□ Despite the disadvantageous market conditions such as the uncertainty of recovery of European financial crisis and Korea's geopolitical risks, by issuing global bond with longest maturity in decent condition, Korea Eximbank triggered Korean institutions' foreign bond issuance which has shrunk since April, and renowned itself as a representative Korean borrowing institution.

The geographic distribution of investors shows America(62%), Europe(10%), and Asia(28%), and the investors comprise of asset managing companies(63%), commercial banks(17%), insurance companies(9%), and others(11%), which illustrates that major large investment institutions participated in this bond.

Meanwhile, Korea Eximbank is making an effort, including issuing non-dollar bond in 7 countries such as Taiwan, Thailand, and Brazil in this year and raising total USD 1.8 billion, to discover niche market.

Korea Eximbank plans to use this newly raised fund for nuclear power, resources development, green growth, and national strategic industry's oversea expansion.