Korea Development Bank Issues $1.2 Billion Global Bonds

"Issued at the Lowest Ever Spread Rate by Korea Development Bank"

[Asia Economy Reporter Wondara] KDB Industrial Bank announced on the 3rd that it has issued a $1.2 billion global bond to investors worldwide.

The bonds issued this time consist of a 3-year maturity floating rate bond of $300 million, a 3-year maturity fixed rate bond of $400 million, and a 5-year 6-month maturity fixed rate bond of $500 million.

Among these, the 3-year maturity floating rate bond is a publicly offered bond linked to the 1-day repurchase agreement rate (SOFR) of U.S. Treasury collateral registered with the U.S. Securities and Exchange Commission (SEC), which KDB issued as the first in Asia.

The SOFR bond was issued as a green bond, one of the environmental, social, and governance (ESG) bonds emphasizing the social role of corporations. The proceeds will be used for green new deal projects such as expanding secondary battery manufacturing plants.

KDB stated, "Despite the recent sharp volatility in U.S. Treasury yields, we reaffirmed the investment demand for Industrial Bank bonds as safe assets in the global market and issued at the lowest spread in the bank's history." They added, "The proportion of ultra-high-quality investors (central banks and sovereign wealth funds) increased compared to the global bond issued in January (January 45% → March 51%), and the investment distribution was balanced across regions."