The Export-Import Bank of Korea said on the 14th that it issued a total of $2 billion in dollar-denominated bonds on the 13th. It issued $1 billion each with maturities of 3 and 5 years.
The interest rates were set at levels adding 18 basis points (bp) and 21 bp, respectively, to the U.S. Government Bonds 3-year yield (1 bp = 0.01 percentage point).
The bank said it is significant that it set the lowest-ever spreads for both 3- and 5-year Korean paper. When issuing foreign currency bonds, the spread is determined by each issuer's credit rating.
The bank said it moved up the issuance timing by about two months to secure policy finance resources in a timely manner to expand support for future strategic industries such as artificial intelligence (AI), semiconductors, and biotech.
An official at the bank said, "Despite conditions marked by heightened geopolitical tensions and uncertainty over global monetary policy in the second half, issuing bonds at a historically low spread shows that global investors trust the bank's bonds as a safe asset," adding, "In addition to enhancing rate competitiveness, we expect it will reduce the foreign-currency funding costs of follow-on Korean paper in the second half."