The Export-Import Bank of Korea (www.koreaexim.go.kr, Chairman Lee Duk-Hoon, "Korea Eximbank") announced that it successfully issued a USD 2.5 billion triple-tranche Global Bond in the early morning of May 19.

As the first issuance by Korea Eximbank this year, the amount of the issue was the largest among the bonds issued by Korean institutions except for the Korean government.

The issue made on the day consists of USD 0.5 billion 3-year floating-rate notes, USD 1 billion 3-year fixed-rate bonds and USD 1 billion 10-year fixed-rate bonds, priced at 3-month US Libor plus 0.70%, 3-year US Treasury yields plus 0.775% and 10-year US Treasury yields plus 0.825%, respectively.

Considering that the most Korean papers are fixed-rate bonds with mid- and long-term maturity of 5-year or 10-year tenor, Korea Eximbank has set a new benchmark for Korean institutions contemplating their own global bond offerings by successfully issuing the 3-year bonds.

A Korea Eximbank official said, "The successful issue of the Global Bond was accomplished as the Bank has timely spotted improved investor sentiment backed by the Federal Open Market Committee (FOMC)'s decision to leave the federal fund rate unchanged and the rebound of international oil prices." He added, "It is meaningful that Korea Eximbank raised such a large volume of capital to support Korean companies."

The bond was oversubscribed by two times, attracting USD 5.2 billion from 314 investors. By region, 44% of the 3-year floating-rate notes were allocated to US investors, followed by 39% to Asia and 17% to Europe, while 3-year fixed bonds were allocated 65% to the US, 20% to Asia, and 15% to Europe, and 10-year bonds were allocated 83% to Asia, 11% to the US and 6% to Europe.

The bond trading on the day was notable for the participation of blue-chip investors such as pension funds, insurance companies and mega asset managers.

The proceeds obtained through this issue will be used to support the globalization of Korea's key industries including overseas construction & industrial plants and natural resource development which are highly influential in foreign exchange earnings and employment in Korea.