The triple tranche bond is divided into fixed-rate US$400 million with a maturity of three years, fixed-rate US$1 billion with a maturity of five years, and variable-rate US$600 million with a maturity of five years. The bonds have a spread of 90 bp, 100 bp, and 92.5 bp, respectively.
More than 200 investors around the world placed orders worth US$4.4 billion in total this time. The Export-Import Bank explained that U.S. investors accounted for no less than 41% of the orders for the five-year fixed-rate bond although a large number of U.S. investors are refraining from investing in the South Korean bond market these days due to North Korea risks and global asset management firms also placed large orders to show their preference for South Korean gilts.
“The bonds were successfully issued as North Korea risks showed some signs of easing to lead to market sentiment recovery,” the bank mentioned, adding, “We also closely monitored the potential impact of Chinese bonds with the Chinese government beginning to work on the bonds after the closing of the National People’s Congress.”
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