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
-
- [카카오의 변신, 브라이언을 지워라]'MZ' 부각된 박새롬 사외이사, AI 열풍 속 커지는 역할
- KDDF, 2기 체제 첫 인사 HLB제약 전복환 대표 영입
- 바이브컴퍼니, AI EXPO KOREA서 'AI 솔루션' 공개
- [Company Watch]'액면병합' 모비데이즈, 재무전략 재정비
- [K-배터리 밸류업 리포트]'열처리 장비사' 원준, 올해 전망 '맑음'
- [코스닥 MZ 리더가 온다]신진용 강원에너지 대표, 결과로 입증한 '젊은 리더십'
- [돌아온 임종윤 넥스트 한미약품]임종윤 사장, 주담대 돌려막기 '82만주' 담보 추가대출
- [현장 인 스토리]뉴로메카, 출하 전 96시간 몸푸는 협동로봇 본진 가보니
- [바이오 스톡 오해와 진실]브릿지바이오, 창업주 엑시트설에 흔들 "사실 아니다"
- [기업집단 톺아보기]해외진출 타진 삼성화재, 영국 투자서 빛 봤다