thebell

전체기사

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 >
주)더벨 주소서울시 종로구 청계천로 41 영풍빌딩 5층, 6층대표/발행인성화용 편집인이진우 등록번호서울아00483
등록년월일2007.12.27 / 제호 : 더벨(thebell) 발행년월일2007.12.30청소년보호관리책임자김용관
문의TEL : 02-724-4100 / FAX : 02-724-4109서비스 문의 및 PC 초기화TEL : 02-724-4102기술 및 장애문의TEL : 02-724-4159

더벨의 모든 기사(콘텐트)는 저작권법의 보호를 받으며, 무단 전재 및 복사와 배포 등을 금지합니다.

copyright ⓒ thebell all rights reserved.