□ On April 14, Korea Eximbank (www.koreaexim.go.kr, Chairman Yong Hwan Kim) reported that the Bank successfully issued a 5.5-year global bond of USD 700 million.

○ The bond was issued at a rate of LIBOR+1.32%, the lowest spread among 5.5-year Korean bonds since the bankruptcy of Lehman Brothers in 2008

<Main Terms of Issuance>
Type: USD global bond
Maturity: 5 years 6 months
Amount: USD 700 million
Rate: Libor+1.32% (equivalent to 5-year US Treasury yields +1.70%)
Underwriter: BofA-Merrill Lynch, HSBC, RBS, Standard Chartered, UBS, Samsung Securities

□ An official of Korea Eximbank stated, “Although conditions at issuance were relatively unfavorable as the Fukushima nuclear power plant disaster was deemed a level 7, the Bank was able to successfully raise foreign currency at a good rate thanks to efforts to highlight the strong fundamentals of the Korean economy as well as the unique role and function of the Bank to offshore investors.”

□ Last year, Korea Eximbank issued the 10-year global bond at the lowest spread. This year, the Bank once again succeeded to issue a 5-year bond at the lowest rate compared to other domestic institutions. This accomplishment reaffirms the position of Korea Eximbank as Korea’s benchmark bond issuer and sets a guideline for other Korean institutions in setting interest rates for issuance of foreign currency bonds.

□ Foreign currency funds secured through the recent global bond issuance will be utilized to help Korean companies win export contracts for large-scale overseas projects in nuclear power, green growth, and natural resource development sectors.
When Korea Eximbank lowers the cost for borrowing, Korean companies benefit from lower financing costs and greater interest rate competitiveness for overseas projects.

□ Korea Eximbank plans to raise a total of 8.8 billion in US currency this year alone. In addition, the Bank will make great efforts to prepare against increasing volatility of the USD currency market through diversification of funding sources with foreign currencies of emerging countries such as India and Brazil.