Woori Bank announced on the 30th that it successfully issued won-denominated double-recourse bonds (covered bonds) worth 210 billion won, utilizing the payment guarantee from the Korea Housing Finance Corporation (HF). This is the first time Woori Bank has issued covered bonds.
Payment-guaranteed covered bonds are financial products that combine the payment guarantee from the Housing Finance Corporation with bonds issued based on high-quality assets such as mortgage loans held by banks, lowering interest rates and enhancing stability.
This bond was issued with a 5-year maturity and a fixed interest rate of 2.76% per annum. The issuance rate was calculated by adding a spread of 0.15 percentage points to the government bond 5-year rate as of the close on the 28th of last month. This is about 0.1 percentage points lower than the private average interest rate of bank bonds with the same maturity.
A Woori Bank official said, "Compared to other covered bonds with the same structure, it recorded the lowest spread and interest rate on record, receiving high evaluations in the market," and noted, "Through the issuance of payment-guaranteed covered bonds, we were able to reduce funding costs and strengthen our long-term funding base."