KDB Industrial Bank Successfully Issues $500 Million Bonds... First Dollar Bonds Since COVID-19 Outbreak

[Asia Economy Reporter Kangwook Cho] Korea Development Bank (KDB) has successfully issued $500 million worth of global bonds. This is the first issuance of dollar-denominated bonds by a domestic financial institution since the outbreak of the novel coronavirus disease (COVID-19).

According to KDB and financial circles on the 7th, KDB issued $500 million worth of 3-year maturity floating rate bonds targeting investors in Asian and European markets on the same day.

A KDB official said, "We conducted the dollar bond issuance targeting overseas investors in Asian and European markets today," adding, "Although some administrative procedures remain, the amount reached $500 million."

KDB is the first to successfully issue dollar-denominated bonds since the international financial market froze due to the full-scale outbreak of the COVID-19 pandemic. Previously, the last global bond issuance was $1.5 billion on February 15, which was also issued by KDB.

As a policy bank, KDB plays a benchmark role in the overseas bond market based on its excellent credit rating (AA) and market position. In particular, with KDB's successful dollar bond issuance, expectations are rising that other financial institutions and companies will also be able to successfully issue dollar bonds.

A financial industry official said, "Despite the international financial market turmoil caused by the COVID-19 impact, the successful issuance of dollar bonds is significant in confirming the solid investment demand for Korean bonds."