Nonghyup Bank raises US$500 mln through U.S. bond issue

SEOUL, July 11 (Yonhap) -- Nonghyup Bank, a South Korean lender, said Tuesday it has raised US$500 million through a five-year U.S. dollar-denominated bond issue to repay maturing debt and fund operations.

With a coupon rate of 2.875 percent, or 105 basis points above the yield on five-year U.S. Treasuries, this latest issuance from Nonghyup Bank marked its first such venture since September last year.

Global credit rating agencies Moody's Investors Service and Standard and Poor's both gave stable ratings for the issuance of A1 and A+, respectively.

The proceeds from the debt sale will be used to repay maturing debt and fund the bank's operations, Nonghyup Bank said in a statement.

A Nonghyup Bank official said the debt sale drew strong demand from global investors despite geopolitical worries over North Korea's nuclear and missile programs.
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