KB Kookmin Bank issues €500 mil of covered bond The issuance draws strong response thanks to appetite for safe-haven assets
Translated by Kim So-in 공개 2021-10-18 07:57:39
이 기사는 2021년 10월 18일 07:52 thebell 에 표출된 기사입니다.
South Korea’s KB Kookmin Bank has successfully raised 500 million euros (686.5 billion won) through an issuance of five-year euro-denominated covered bonds thanks to heightened demand for safe-haven assets.The lender will issue the covered bonds on October 19 after drawing $1.1 billion in bids during the book building process on October 13.
Strong response from institutional investors marked a stark contrast to the weakening investor sentiment in the senior debt market. Recently a dampened investor sentiment has been observed in the global bond markets due to increased interest rate volatility and rising credit risks from China.
KB Kookmin Bank has benefited from investors’ appetite for safe-haven assets amid the markets’ wild volatility. Covered bonds are debt instruments secured by a cover pool of mortgage loans (property as collateral) or public-sector debt to which investors have a preferential claim in the event of default. KB Kookmin Bank’s covered bond is rated AAA by S&P, four notches higher than the lender’s A+ rating.
The bank’s green covered bond issue is the first of its kind among Korean firms. Euro-denominated covered bonds have largely been issued in a social bond format so far. The lender plans to spend the proceeds on the eco-friendly business.
The yield on the covered bonds is based on a spread of 14 basis points above the euro mid-swap rate, a reference rate. It is below KB Kookmin Bank’s proposed spread of 18 basis points, thanks to heavy demand.
BNP Paribas, Citi Global Markets Korea Securities, Credit Suisse, ING Securities, JP Morgan, and KB Securities handled the bond sale. (Reporting by Hye-rim Pi)
< 저작권자 ⓒ 자본시장 미디어 'thebell', 무단 전재, 재배포 및 AI학습 이용 금지 >
관련기사
best clicks
최신뉴스 in 전체기사
-
- [2023 더벨 글로벌 투자 로드쇼-인도네시아]인니 정부, 친기업 정책 드라이브에 뜨거운 관심 '체감'
- [2023 더벨 글로벌 투자 로드쇼-인도네시아]"유망 스타트업 양성소, 글로벌 투자 거점 부상"
- [2023 더벨 글로벌 투자 로드쇼-인도네시아]"철저히 투자금융 관점서 봐야, 전략적 접근시 유리"
- [2023 더벨 글로벌 투자 로드쇼-베트남]신용보증기금, 중기 베트남 진출 지원에 팔 걷었다
- [2023 더벨 글로벌 투자 로드쇼-베트남]인프라·산업 투자 증가, 부동산 가격 상승 견인
- [2023 더벨 글로벌 투자 로드쇼-베트남]떠오르는 신규 투자처 '온실가스 감축 프로젝트'
- [2023 더벨 글로벌 투자 로드쇼-베트남]VITASK, 베트남 현지 기업 생산·기술력 개선 앞장
- [2023 더벨 글로벌 투자 로드쇼-베트남]급성장 '핀테크' 산업, 전자 결제·P2P·초단기 분야 각광
- [2023 더벨 글로벌 투자 로드쇼-베트남]진출 계획시 세무 접근 필요, '우대세율·감면' 활용해야 '득'
- [2023 더벨 글로벌 투자 로드쇼-베트남]한국이 투자 주춤할 때 태국은 과감히 '베팅'