The Export-Import Bank of Korea (www.koreaexim.go.kr, Chairman Lee Duk-Hoon, "Korea Eximbank") announced on February 8 that it successfully issued an AUD 500 million (USD 400 million) Kangaroo Bond on the morning of February 7.

 The benchmark issue was composed of three tranches, consisting of AUD 150 million 5-year fixed-rate notes, AUD 250 million 5-year floating-rate notes, and AUD 100 million tap of the 10.3-year fixed-rate notes originally issued in November 2016.

 * A tap / bond re-opening refers to an additional offering of a previously issued bond series retaining the same maturity and coupon. Typically, a tap occurs when there is excessive investor demand.

 The three tranches were priced at Semi-Quarterly Asset Swap Rate plus 1.17%, 3-month Bank Bill Swap Rate plus 1.17% and Semi-Quarterly Asset Swap Rate plus 1.25%, respectively.

 A Korea Eximbank official said, "By issuing the first triple-tranche benchmark Kangaroo Bond among Asian issuers, Korea Eximbank successfully drew the attention of onshore and offshore investors with diverse investment needs." The official added, "The Bank's status as a pioneering issuer in the Kangaroo bond market was reaffirmed as the bond was oversubscribed by two times, with local investors taking more than 50% of all investors in the order book."

 The new issue attracted over AUD 900 million in orders from 46 investors. By region, 52% of the 5-year floating-rate notes were allocated to Australian investors, followed by 41% to Asia and 7% to Europe. The 5-year fixed-rate tranche was allocated 49% to Asia, 43% to Australia, and 8% to Europe.  Finally, the 10.3-year fixed-rate tap was allocated 60% to Asia, 38% to Australia and 2% to offshore US investors.