□ On March 6, Korea Eximbank (www.koreaexim.go.kr, Chairman Yong Hwan Kim) reported that the Bank successfully issued a Swiss franc 4-year bond with a face value of CHF 250 million equivalent to USD 270 million.

○ After a US dollar swap, the bond was issued at a rate of LIBOR+137bp, 20bp lower than bond issuance in US dollar markets.

<Main Conditions of Issuance>
Amount: CHF 250 million equivalent to USD 270 million
Type: fixed rate bond
Maturity: 4 years
Rate: CHF swap rate +1.0%
(3 months LIBOR+1.37% after USD swap)
Underwriter: RBS, UBS

* Swiss franc swap rate: the rate that CHF Libor is used as the fixed rate on an exchange.

□ An official from the Bank stated, “The Bank was able to lower its rate by taking advantage of the increasing liquidity of the Swiss franc, which is increasingly seen as a safe asset as a result of the turmoil in the Middle East.”

○ The bank issued the bond in order to hedge against high volatility in the global bond market resulting from spreading fears of global inflation, delays in resolving the European financial crisis, and geopolitical risks in the Middle East, and to preemptively secure foreign currency funds for large-scale overseas project orders in national strategic industries such as nuclear power plants, green growth, and resource development.

□ Also, in order to diversify funding markets and reduce related costs, Korea Eximbank raised a total USD 1.5 billion* at a low interest rate, including USD 130 million in rupees, from five non-US dollar niche markets

* 78% of total foreign currency bond issuance (USD 1.8 billion) by Korea Eximbank in 2011.