Korea SMEs and Startups Agency (KOSME) said on the 19th that it issued $400 million (about 560 billion won) in social bonds.
It is the first foreign-currency bond issuance in 10 years amid rising U.S. long-term rates and the Middle East conflict, which have increased uncertainty in global capital markets.
With a maturity of 3 years and 6 months, the coupon was set at the U.S. Government Bonds yield plus 40 basis points (0.40 percentage point).
This is the lowest spread on record among fixed-rate foreign-currency bonds with a 3-year maturity issued by domestic public corporations and agencies. In particular, Korea SMEs and Startups Agency (KOSME) noted that it is meaningful to have raised funds on competitive terms amid heightened volatility and uncertainty in global financial markets due to rising U.S. long-term rates and the Middle East conflict.
Through this foreign-currency bond issuance, Korea SMEs and Startups Agency (KOSME) secured funding at lower rates than in the domestic market and, in line with the social bond's purpose, can contribute to realizing social value such as supporting the growth of small and venture businesses and creating jobs.
Earlier, Korea SMEs and Startups Agency (KOSME) received "SQS1 (Excellent)"—the top grade in the social financing category—in Moody's ESG assessment. This is the highest evaluation among Korea's social financing assessments conducted by Moody's in the Asia-Pacific over the past five years and is the first such achievement by a domestic institution.
The funds raised this time will be used as policy financing to create tangible social value, including support for small and venture businesses' AI transformation (AX), fostering new industries, securing engines for innovative growth, and creating jobs.
Chair Kang Seok-jin of Korea SMEs and Startups Agency (KOSME) said, "It is the result of global investors highly valuing KOSME's fundamentals and the growth potential of Korea's small and venture businesses," adding, "We will continue to diversify funding sources to secure high-quality capital in a timely manner and serve as a strong pillar for small and venture businesses in overcoming crises and achieving innovative growth."