Full-Scale Entry into the Foreign Currency Bond Issuance Market
[Asia Economy Reporter Oh Ju-yeon] KB Securities' Hong Kong local subsidiary announced on the 22nd that it participated as a joint lead manager in KB Capital's dollar bond issuance, successfully completing its first foreign currency bond issuance and entering the global bond market.
In this KB Capital dollar bond issuance, KB Securities' Hong Kong local subsidiary (hereinafter KB Securities) successfully performed the role of joint lead manager alongside Citigroup and Cr?dit Agricole.
KB Securities evaluated that this foreign currency bond issuance overseas will enable them to actively expand their overseas bond issuance business, thereby establishing a presence not only in the domestic won bond issuance market, where they have held the top position for 10 years, but also in the foreign currency bond issuance market.
KB Capital, a key credit-specialized company of KB Financial Group, successfully issued USD 300 million (approximately KRW 340 billion) in its first foreign currency bond issuance. Based on global investors' trust in KB Financial Group, the demand forecast was four times the initial target amount, making KB Capital the second foreign currency bond issuer among domestic credit-specialized companies after Hyundai Capital.
In particular, in this deal, KB Securities successfully performed the role of joint lead manager based on its pricing capabilities accumulated in the domestic won bond issuance market.
Until now, domestic securities firms lacked dedicated overseas syndicate teams that freely monitor global financial markets and share information, showing weaknesses in the pricing area, which involves coordinating issuance prices.
KB Securities established a dedicated syndicate team at its Hong Kong local subsidiary this year, becoming the only domestic securities firm to possess foreign currency bond pricing capabilities, and is accelerating its efforts to pioneer overseas markets based on this.
Starting with the lead management of KB Capital's dollar bond issuance by its Hong Kong local subsidiary, KB Securities plans to actively expand its presence in the foreign currency bond issuance market.
Kim Sung-hyun, CEO of KB Securities, stated, "Based on the experience of leading KB Capital's dollar bond issuance, we will continuously expand our track record in leading domestic high-quality companies and public enterprises, and KB Securities will lead the market not only in the won bond market but also in the foreign currency bond issuance market, responding to the government's policy to strengthen the global competitiveness of domestic financial companies."
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