The Export-Import Bank of Korea (www.koreaexim.go.kr, Chairman EUN, Sung-soo, "Korea Eximbank") announced on October 23 that it successfully issued an AUD 500 million (USD 350 million) Kangaroo Bond*.
*An Australian dollar-denominated bond issued by foreign institutions in the Australian capital market
Korea Eximbank had made a debut in the Australian capital market in 2012. The bank is now the only Asian institution which has successfully issued the AUD-denominated bonds for the past seven consecutive years since its first issuance.
The bond issued on the day is a 5-year floating-rate note, priced at BBSW*+0.95%, which is the lowest level among the rates that have been offered by Korean institutions.
*BBSW(Bank Bill Swap Rate) : the short-term interest rate used as a benchmark rate for Kangaroo bonds
The bond attracted AUD 700 million from 32 investors. By region, investors from Asia accounted for 51% and Australia for 41%. It is attributed to Korea Eximbank’s active marketing activities to attract many local investors by holding an IR seminar in Australia this month.
A Korea Eximbank official said, “Amid the current financial instability including global trade disputes, the Bank successfully sold the bonds, which reaffirmed the trust of Australian investors, who are known to be conservative, in the Korean economy.” The official added, “Korea Eximbank will extend efforts to diversify its funding resources and procure liquidity in a timely manner.”