With this offering, Korea Eximbank succeeded in issuing eurobonds for five consecutive years since 2016, solidifying its status as Korea's leading borrower.
The new issues met with overwhelming demands from investors worldwide during the book building. Korea Eximbank raised USD 5.1 billion and EUR 3.2 billion attracting 240 and 224 investors, respectively. Backed by such sizable orders, the Bank successfully lowered interest rates by 40 basis points (bps) and 35bps, respectively, compared to the initial offer rates while increasing the volumes each by USD 200 million and EUR 200 million more than initially planned.
The price for the 3-year floating rate USD bonds was set at three-month Libor plus 1.20%, while the 5-year fixed-rate eurobonds were priced at 0.829%, 1.05%p above the mid-swap rate (△0.0.221%).
Korea Eximbank will use the proceeds from the bond issues to support the overseas expansion of Korean companies suffering from the COVID-19 crisis, out of which the euro green bond payments will be fully used to support eco-friendly projects in areas such as renewable energy and secondary batteries (rechargeable batteries).
A Korea Eximbank official said, "The offerings are seen as a meaningful achievement as it was confirmed that investment demand for Korean papers remained quite solid despite rising market uncertainties from the global pandemic."
He added, “By presenting benchmarks to domestic institutions seeking to issue USD and EUR bonds in the future, we have widened opportunities for their entry into USD and EUR bond markets as their foreign currency procurement markets."
