Korea Investment & Securities announced on February 27 that it had successfully completed the exclusive underwriting and acquisition work for a public offering of Kimchi bonds (foreign currency-denominated bonds) worth USD 130 million (approximately KRW 18.75 billion), issued by KB Kookmin Card. This is the largest Kimchi bond issued by a credit-specialized financial company (Ltd.) in Korea to be exclusively underwritten by a domestic securities firm, further demonstrating Korea Investment & Securities' differentiated sales capabilities and its influence in the foreign currency funding market.
Kimchi bonds refer to bonds issued in foreign currencies (mainly US dollars) in the domestic market by Korean residents or companies with a demand for foreign currency funds. The Kimchi bond issued this time is a single-tranche bond with a two-year maturity (redemption date: February 24, 2028). It is a floating rate note (FRN) with an interest payment structure that adds 80 basis points (1bp = 0.01 percentage point) to the risk-free benchmark rate SOFR (Secured Overnight Financing Rate), which is secured by US Treasury bonds.
Korea Investment & Securities exclusively acquired the entire issuance, meeting demand for USD 130 million based on KB Kookmin Card's creditworthiness, even amid high volatility in the global financial markets. The funds raised will be used entirely as working capital for merchant payment settlements, contributing to the stable liquidity management of KB Kookmin Card.
Korea Investment & Securities stated, "It is significant in that it sets a new record for the largest Kimchi bond ever exclusively underwritten by a securities firm for a credit-specialized financial company," adding, "We will continue to lead the market by providing optimized funding solutions tailored to the needs of our corporate clients."
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