Breaking a 6-Year Hiatus, Returning to the Japanese Yen Bond Market
The Export-Import Bank of Korea announced on the 21st that it has issued Samurai bonds worth 65 billion yen (approximately 420 million dollars). Samurai bonds refer to yen-denominated bonds issued by foreign institutions in the Japanese capital market.
The maturities of the bonds issued this time were diversified to 3, 5, and 7 years according to investor demand, with amounts of 25 billion yen, 33.4 billion yen, and 6.6 billion yen respectively. Among these, the 5-year bonds were issued as Green bonds, faithfully fulfilling its role as a leading domestic institution in environmental, social, and governance (ESG) areas.
With this issuance, the Export-Import Bank of Korea returned to the yen bond market for the first time in six years since 2018. The bank explained that this Samurai bond issuance is significant in contributing to the promotion of Korea-Japan economic cooperation by presenting a new Korean benchmark this year following a series of Korea-Japan summits and last year's first government-issued yen-denominated bonds.
An official from the bank stated, “Not only Japanese institutional investors but also various institutions such as international organizations and global asset management firms participated in the investment, providing an opportunity to demonstrate the Export-Import Bank of Korea’s and the Republic of Korea’s external credibility,” adding, “Through continuous monitoring of the Japanese market and active IR activities, we were able to attract strong demand from regional and international investors, allowing us to issue bonds at a lower interest rate than initially expected.”
Meanwhile, the proceeds from the 5-year Green bond issued this time will be used to support funding for decarbonization and eco-friendly projects.
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