Korea Investment & Securities Issues $400 Million Foreign Currency Bonds

Excess Orders Received Beyond Forecasted Issuance Amount

한국금융지주 subsidiary Korea Investment & Securities announced on the 31st that it successfully issued $400 million (approximately 540 billion KRW) worth of foreign currency bonds. The issuance was increased by $100 million from the initially planned amount, demonstrating a high level of fundraising competitiveness.

The foreign currency bonds issued by Korea Investment & Securities have a 3-year maturity structure, with an interest rate set at the US 3-year Treasury yield plus a 235 basis points spread. The initial planned issuance amount was $300 million. During the bookbuilding process, valid orders totaling $2.65 billion were received from about 170 institutions, leading to a final issuance size of $400 million. The interest rate was also about 25 basis points lower than the initial guidance.

It is interpreted that the active roadshow prior to the bookbuilding, which gained investors' trust in the diversified business portfolio and company stability, was a key factor. Korea Investment & Securities conducted face-to-face roadshows targeting over 50 institutional investors in locations such as Hong Kong and Singapore from the 25th to the 27th. The foreign currency bond issuance was led by Citigroup Global Markets Securities, HSBC, Natixis Bank (NATIXIS), and KIS Asia.

This is the third case of Korea Investment & Securities raising foreign currency funds. Starting with the issuance of €600 million worth of Eurobonds in 2021, in July this year, it became the first domestic securities firm to issue Samurai bonds (yen-denominated bonds) worth 20 billion yen.

Korea Investment & Securities plans to further accelerate its overseas business. ‘SF Credit Partners,’ a joint venture established earlier this year with the US financial firm StepStone Financial, is active in the US acquisition finance and private lending sectors. The company is also working on providing differentiated global financial products by expanding overseas IB deal sourcing channels through a strategic partnership with the global asset management firm Carlyle Group.