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KB Kookmin Bank sells 500 mln euros in covered bonds

All News 14:18 July 09, 2020

SEOUL, July 9 (Yonhap) -- KB Kookmin Bank, a major South Korean lender, said Thursday it has raised 500 million euros (US$568 million) by floating euro-denominated covered bonds.

The five-year bonds carry an annual interest rate of 0.052 percent, or the five-year euro swap rate plus a spread of 40 basis points, and will be listed on the Singaporean market, the lender said.

It marks the first time that a South Korean bank has issued euro-denominated covered bonds, a type of debt securities that are backed by a group of prime assets.

KB Kookmin Bank said it has received the highest rating of "AAA" on the debt issue from global credit appraiser Standard and Poor's and Fitch Ratings.

The proceeds will be lent to finance the resolution of environmental and social problems, with some to be extended to help cushion the fallout from the coronavirus outbreak, it added.

KB Kookmin has so far raised about $3.47 billion by floating covered bonds 11 times -- four denominated in the dollar and euro, and seven in the South Korean currency.

The corporate logo of KB Kookmin Bank (Yonhap)


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