The Export-Import Bank of Korea (www.koreaexim.go.kr, Chairman Choi JongKu, "Korea Eximbank") announced on May 23 that it successfully issued a €750 million Euro-denominated Bond in the evening of May 22.

 This is the first public issuance of euro-denominated bonds by a Korean entity this year and second by Korea Eximbank since the Bank made a return to the euro bond market in 2016 after a gap of three years.

 The issue made on the day is in a 5-year tenor. The pricing on the bond was set at 0.622%, a spread of 40 bp over the mid-swap rate, which hit the lowest spread level among euro-denominated bonds issued by Korean institutions.

 The effort behind the Bank's achievement of such competitive level of spread is its week-long tour of major European cities including Paris, London, Amsterdam, Zurich and Frankfurt, starting from May 15 that the Bank had made to hold IR roadshows. During this period, the Bank assured investors of the safety of investing in Korea and stressed positive developments of Korea's economic fundamentals backed by high expectations of economic and political policies of the newly minted administration.

 The bond attracted as many as 65 investors. By type of investors, central banks and supranationals accounted for 36%, asset managers 31%, banks 26%, pension funds and insurance companies 6%, and other investors 1%.

 Proceeds arising from this issue will be used as sources for the Bank's various financial products such as project finance, structured finance, composite finance, development finance, etc. to support Korean companies in winning more overseas projects. Those will be also used to support the so-called New Growth Industry ranging from the service, energy to transportation equipment sectors, expected to drive the growth of national economy.

 Aiming to raise USD 11 billion this year, Korea Eximbank, the nation's biggest issuer of international bonds, is planning to diversify its funding portfolio and to raise funds stably and effectivley from blue-chip investors such as central banks, supranationals and pension funds.