KDB issues $1.5 bn multi-tranche global bonds at lowest spread

Lee Eun-joo 입력 2021. 10. 19. 14:27
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State-run Korea Development Bank (KDB) has marketed multi-tranche global bonds worth $1.5 billion at cheapest rate despite growing external risks over inflation and debt in emerging countries.

According to KDB on Tuesday, the fixed-rate bonds were issued Monday in three tranches – $700 million with three and a quarter years maturity, $500 million in five and a half years, and $300 million in 10 years. The shortest notes were priced at 15 basis points over the three-year U.S. Treasury note, the 5.5-year at 30 basis points over five-year U.S. Treasury note, and 10-year debts 45 basis points over 10-year U.S. Treasury note.

The notes were sold at the lowest spread.

The 3.25-year debt, in particular, was issued at a minus spread over the three-month U.S. dollar Libor rate.

Nearly half of the investors were central banks and international organizations.

The KDB plans to use the proceeds from the sale of 3.25-year notes on green new deal projects related to secondary batteries and renewable energy under its environmental social governance management system.

KDB said that the strong demand for Korean notes shows strong confidence by global investors as it comes despite risks over global inflation and rising debt in emerging countries.

The state lender’s issue follows the cheapest sovereign issue earlier in the month.

The 10-year dollar-denominated Korean sovereign bond was priced 25 basis points over the 10-year U.S. Treasury note and five-year euro-denominated notes 13 basis points above euro mid-swap rate.

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