The state-run Korea Development Bank(KDB) said on Sept. 24 that it has issued a total of $1 billion worth of global bonds for investors around the world on Sept. 23.
The global bond consists of $500 million in three-year floating rate and $500 million in five-year fixed rate. The three-year floating rate added 47.5 bp to the three-month Libor rate, while the five-year fixed rate was determined at the level of 60 bp plus the five-year U.S. government bond.
The KDB explained that the issuance rate was lowered by 22.5 bp and 20 bpp, respectively, than the rate originally proposed owing to the rush of orders worth $4.2 billion, 4.2 times the amount issued.
It also said it reaffirmed its trust from global investors despite external variables such as concerns of a continued global economic recession, trade disputes between the U.S. and China, and Japan's export regulations.
A KDB official said that the final rate has been decided within the level of the distribution rate of existing bonds, creating a favorable issuance environment for local institutions, which are set to issue bonds in the future.