The Export-Import Bank of Korea Raises $400 Million to Support Green Initiatives
February 02 2016 - 1:50PM
Business Wire
The Export-Import Bank of Korea (“Korea Eximbank”), the
government’s export credit agency, sold $400 million of 5-year
bonds yesterday. As Korea Eximbank’s second green bond offering
since the first one in 2013, the issue was priced early in the New
York trading day and met strong demand from accounts across Asia,
Europe and the US.
The bonds pay a 2.125% semi-annual coupon and were re-offered to
investors at 99.745 to yield 2.179% to a maturity date of 11
February 2021. The yield was equivalent to 87.5 bps over US
Treasuries.
The bank's deal was formally launched just after Asian markets
opened on Tuesday morning with guidance set within the area of
Treasuries plus 105bp area.
By late afternoon, the joint bookrunners, Bank of America
Merrill Lynch and Crédit Agricole CIB had tightened final guidance
to 90bp area +/-2.5bp over Treasuries.
The final order size was over $1.1 billion across 64 accounts
(close to 3 times oversubscription). Asia was allocated 48%,
European accounts bought 35% whilst US based accounts bought the
remaining 17%. By investor-type, conventional asset managers took
40% of the deal, insurance 30%, banks 20% and central banks took
10%.
Korea Eximbank’s senior unsecured green bond was sold under the
SEC-registered format and is rated Aa2 by Moody’s and AA- by both
Standard & Poor’s and Fitch.
First issued by the World Bank in 2008, green bonds or socially
responsible investing (SRI) bonds issuances have ballooned with the
growing importance of the need for companies to have
environmentally and socially sustainable policies. Over USD 36
billion was issued in 2014 and over USD 47 billion was issued in
2015. The market has diversified from Sovereign Supranational
Agency / Financial Institution issuers in recent years with a slew
of corporates issuances as well as a handful of high yield green
bonds.
Previously, Korea Eximbank has issued a global green bond in
early 2013 and became the first non- international financial
institution in the world to successfully issue a global green bond.
As the only green bond issuer out of Korea, Korea Eximbank intends
to use the proceeds of the bond issue to support low-carbon, green
sector exporters to power Korea’s future drivers of growth.
This press release has been prepared solely for informational
purposes and is not intended to be distributed to or reviewed by
anyone other than you. It is not an offer, recommendation or
solicitation to buy or sell, nor shall there be any offer,
solicitation or sale of securities in any jurisdiction in which
such offer, solicitation or sale would be unlawful prior to
registration or qualification of such securities under the
securities laws of any such jurisdiction. A registration statement
relating to securities has been filed with the U.S. Securities and
Exchange Commission and has become effective. A written prospectus
for the offering meeting the requirements of Section 10 of the
Securities Act of 1933 (other than a free writing prospectus as
defined in Securities Act Rule 405) may be obtained from BofA
Merrill Lynch at One Bryant Park, New York, New York 10036.
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version on businesswire.com: http://www.businesswire.com/news/home/20160202006463/en/
Press Contacts - For
media inquiries please use emailYook-Keun ShinDirector of
Treasury Groupykshin@koreaexim.go.krorByung-Soo KimSenior Finance
Officer of Treasury Groupbskim82@koreaexim.go.krorJessica
CharwinU.S. Associatejessica.charwin@ca-cib.comCorporate
Communications – AmericasCredit Agricole CIB212-261-7255
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