Hana Bank Completes Dollar Settlement of Treasury Bond Trade Through ICSD... "First Among Domestic Commercial Banks"

Hana Bank said it has successfully completed a Treasury Bond trade through an international central securities depository (ICSD). On the 27th, the bank settled the transaction in U.S. dollars, marking the first such case among South Korean commercial banks. Hana Bank said it structured the deal in dollars to improve settlement convenience for foreign investors.
ICSD is an institution that allows foreign investors to trade and hold South Korean Treasury Bonds without opening a separate account in Korea. A Hana Bank official said, "Until now, South Korean financial institutions faced restrictions on directly participating in offshore settlement through ICSD." The official added, "With continued regulatory improvements by the government and related agencies, domestic financial institutions have now gained the foundation to directly trade and settle Treasury Bonds with foreign investors through ICSD."
Since offshore settlement through ICSD was allowed for domestic financial institutions in January this year, Hana Bank has been adapting to the regulatory changes. It has built a dollar settlement process through FX transactions as well as Treasury Bond trades. Hana Bank expects the latest dollar settlement of Treasury Bonds to significantly improve settlement convenience and efficiency for overseas investors.
Meanwhile, Hana Bank last May became the first domestic commercial bank to conclude a Treasury Bond trade agreement with an offshore foreign investor using Euroclear's omnibus account for government bonds.

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