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S. Korea to sell FX stabilization bonds

Finance 13:52 June 12, 2019

By Kim Kwang-tae

SEJONG, June 12 (Yonhap) -- South Korea's finance ministry said Wednesday that it plans to sell foreign exchange stabilization bonds with four co-lead managers, such as Citi and HSBC tapped for the debt sale

The ministry said it plans to sell dollar-denominated Green and Sustainability bonds with 5-year maturity, and a dollar-denominated conventional bond with a 10-year maturity.

The ministry said the size and the coupon rates will be determined later depending on demand and market conditions. The FX bonds are sold to secure reserves against volatility in the currency market.

"The move could enhance foreign investors' confidence in the South Korean economy and stabilize the foreign exchange market," a ministry official said by phone from New York where he holding discussions on the matter with foreign investors.

The official also said the planned debt sale could have a positive effect on securing liquidity by the private sector.

The finance ministry is allowed to float such bonds worth up to US$1.5 billion for the year.

S. Korea to sell FX stabilization bonds - 1

entropy@yna.co.kr
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