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
-
- '재무개선' AJ네트웍스, 조달비용 '확' 낮췄다
- '9년만에 엑시트' 한앤코, 한온시스템 거래구조 살펴보니
- 한국타이어앤테크놀로지, 한온시스템 인수한다
- [수술대 오른 커넥트웨이브]2대주주 지분매입 나선 MBK, 주식교환 카드 꺼냈다
- [이사회 모니터]이재용 에이비프로바이오 대표, 바이오·반도체 신사업 '드라이브'
- 와이투솔루션, 주인 바뀌어도 '신약' 중심엔 美 합작사 '룩사'
- 아이티센, 부산디지털자산거래소 본격 출범
- 아이에스시, AI·데이터센터 수주 증가에 '날개'
- [이사회 모니터]서정학 IBK증권 대표, ESG위원회도 참여 '영향력 확대'
- SW클라우드 '10주년' 폴라리스오피스, “초격차 밸류업”