On the 10th, the Export-Import Bank of Korea (KEXIM) announced that it successfully issued the first-ever US dollar-denominated Development Finance Bond (DF Bond) in Korea on the 9th. Development Finance Bonds are issued to support private sector development projects in developing countries, and the bond issued this time is a 3-year maturity bond worth 500 million dollars.
Despite the expansion of uncertainties in the international financial market due to conflicts between Israel and Iran and the US presidential election situation, KEXIM reaffirmed global investors' trust in Korean bonds by issuing the Development Finance Bond.
KEXIM utilized a club deal issuance method, where multiple investors jointly invest, mainly involving top-tier investors who are highly interested in development finance and sustainable goals.
KEXIM implemented a tailored strategy to attract investors by actively promoting its Private Investment Promotion Program (PIPP) and cooperative relationships with overseas development finance institutions to impact investors. As a result, with active participation from international organizations, central banks, and development finance institutions, the proportion of high-grade government/central bank, international organizations (SSA), and impact investors exceeded 80%.
A KEXIM official stated, “Through this issuance, KEXIM has pioneered a new area in sustainable finance in the global capital market and strengthened its position as Korea’s representative development finance institution,” adding, “The funds raised through the Development Finance Bond will be used to improve infrastructure in developing countries and respond to climate change, promoting economic exchange and serving as an opportunity for KEXIM to leap forward as an international cooperation finance institution.”
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