EXIM Bank scales up multi-tranche global bonds to $2 bn, includes 20-yr note

The Export-Import Bank of Korea (EXIM Bank) marketed three-tranche global bonds worth $2 billion to include longest-dated 20-year maturity after scaling up from original $1.5 billion scheme upon strong demand for a new debt by a Korean state lender.

The global bonds are arranged in three tranches—$750 million with three-year maturity, $750 million in five and a half years and $500 million in 20 years. The three-year notes were priced at 20 basis points over the three-year U.S. Treasury note. The 5.5-year and 20-year debts were priced at 35 and 50 basis points over the U.S. Treasury of the same maturity, respectively.

The 20-year bonds mark the longest-dated paper from a Korean bank issuer. The longest dated notes sold by EXIM were in 10 years.

The bank decided to up the offering to $2 billion after receiving $5.4 billion worth of orders from investors during its book-building session, nearly 3.6 times more than its initial offering of $1.5 billion.

More than half of the investors were central banks, sovereign wealth funds and international organizations.

“The strong demand for the long-term bonds shows investors’ confidence in the Korean economy’s fundamentals and EXIM’s financial stability,” said an official of EXIM Bank.

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