Korea Eximbank sells US$1.5 bln worth of bonds

SEOUL, Feb. 4 (Yonhap) -- The state-run Export-Import Bank of Korea (Korea Eximbank) said Thursday that it has issued global bonds worth US$1.5 billion to overseas investors.

The three-tranche debt is comprised of three-year bonds worth $500 million and five-year bonds worth $700 million, with the remainder maturing in 10 years, the lender said.

The three-year bonds carry an annual interest rate of the yield on three-year U.S. Treasurys plus 0.23 percent, and the five-year debt has a rate of the return on five-year U.S. Treasurys plus 0.28 percent. The remainder carries an interest rate of the yield on 10-year U.S. Treasurys plus 0.38 percent.

Korea Eximbank said the debt carries the lowest interest rates among foreign-currency bonds issued publicly by South Korean institutions.

A bank official said foreign investors have shown keen interest in the gilt-edged bonds, with central banks, sovereign wealth funds and international institutions accounting for 51 percent of buyers.

The proceeds from the debt sale will be used to help South Korean green and digital companies make inroads into overseas markets.

The global bond issuance follows the lender's sale of $260 million worth of peso-denominated bonds in the Mexican market in January.

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