Korea Development Bank Issues $300 Million Eurobond

Reaffirming the Status of AA-Rated Safe Assets Despite Increased Volatility in International Financial Markets

[Asia Economy Reporter Song Hwajeong] On the 26th, the Korea Development Bank announced that it has issued global bonds worth a total of 300 million dollars targeting investors in Asia and Europe.

The bonds issued this time have a 3-year maturity and were issued in the form of fixed-rate bonds. The Korea Development Bank explained that despite the market volatility caused by the US interest rate hikes and concerns over supply chain disruptions originating from China, which dampened investor sentiment, it secured the necessary liquidity in a timely manner through a swift public bond issuance.

An official from the Korea Development Bank said, "Most investors were high-quality entities such as SSA (central banks of various countries, international organizations, and policy financial institutions), multinational corporations, and banks. Even though the offering was targeted only at investors in Asia and Europe excluding the US, we attracted investment orders three times the issuance amount," adding, "Despite the increased market volatility and unstable investor sentiment, we played a role as a benchmark for successful overseas bond issuance by Korean institutions through the issuance of Eurobonds under favorable conditions."

Despite the cooled investor sentiment in the overseas bond issuance market, the Korea Development Bank issued bonds with a new issuance premium (NIP) of around 5 basis points, which is better than the recent Korean bond market formation level (10~20 basis points).

The Korea Development Bank plans to continue efforts to create a favorable issuance environment for Korean institutions as a leading policy financial institution in the future.