Korea Securities Finance Corporation issues its first $300 million foreign-currency bond

[Financial News] Korea Securities Finance Corporation has issued $300 million in foreign-currency-denominated bonds (global bonds), 71 years after its founding. It is the first securities finance company in the world to issue a global bond through a public offering.
According to Korea Securities Finance Corporation on the 6th, the bonds are three-year, U.S. dollar-denominated public offering bonds. The annual issuance rate is 4.977%, 0.47 percentage points above the yield on three-year U.S. Treasury notes. Moody's Corporation assigned the bonds an Aa2 credit rating, the same as South Korea’s sovereign credit rating.
Investor orders totaled $2.4 billion, eight times the issue amount. By investor type, banks accounted for 48%, asset managers 39% and others 13%. The company said the results reflected efforts to promote its public role in the capital market and its strong financial soundness to investors, including through roadshows in Singapore and Hong Kong.
On the 2nd, the company held a ceremony with related institutions to mark the signing of the underwriting agreement for the bond issuance. It plans to diversify its funding channels into global markets through the issuance and expand the basis for supplying foreign-currency liquidity to the capital market.
A Korea Securities Finance Corporation official said, “Seventy-one years after our founding in 1955, we have made our first foray into the global capital market and become the first securities finance company in the world to issue a global bond through a public offering.” The official added, “Despite this being our inaugural issuance, high-quality global investors took part.”
[email protected] Joo Won-gyu Reporter