Expanding the Foundation for Supplying Long-Term, Fixed-Rate Mortgages in Daegu and Gyeongbuk
Korea Housing Finance Corporation (President Kim Kyunghwan) has signed a "Covered Bond Payment Guarantee Business Agreement" with iM Bank to promote the supply of long-term, fixed-rate mortgage loans by commercial banks.
Korea Housing Finance Corporation has signed a covered bond payment guarantee agreement with iM Bank. Provided by Korea Housing Finance Corporation
The signing ceremony was held on December 18 at the iM Bank headquarters in Suseong-gu, Daegu.
Under this agreement, iM Bank will be able to secure funding for mortgage loans more stably through the issuance of covered bonds. As a result, financial consumers are expected to have broader access to long-term, fixed-rate mortgage loans with less exposure to interest rate volatility.
A covered bond is a bond issued under the Act on the Issuance of Dual-Recourse Bonds, which grants bond investors both a claim against the issuing institution and priority repayment rights over the pool of underlying assets provided as collateral, ahead of other third parties.
Kim Kyunghwan, President of Korea Housing Finance Corporation, stated, "With this agreement, we have established a foundation to promote long-term, fixed-rate mortgage loans in the Daegu and Gyeongbuk regions, following our efforts in the Busan and Gyeongnam regions. The corporation will continue to support the issuance of covered bonds through cooperation with private financial institutions."
Korea Housing Finance Corporation also signed a covered bond payment guarantee business agreement in July with BNK Busan Bank and BNK Gyeongnam Bank, which are based in the Busan and Gyeongnam regions, thereby accelerating the expansion of long-term, fixed-rate housing finance centered on regional financial institutions.
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