The Export-Import Bank announced on the 8th that it has issued a total of $700 million in 'Wanton Bonds' and 'Sterling Bonds.'
Wanton Bonds are Hong Kong dollar-denominated bonds issued by foreign entities in the Hong Kong capital market, while Sterling Bonds are pound sterling-denominated bonds issued by foreign entities in the British capital market.
The issuance of Wanton Bonds is the first by a domestic institution. The maturity of the Wanton Bonds is three years, and the issuance amount is 2.4 billion Hong Kong dollars (approximately $300 million). The final issuance interest rate is 2.969% per annum. The bank explained that it achieved competitive rates compared to U.S. dollar bonds.
On the 1st, the bank also issued £300 million (about $400 million) in Sterling Bonds in the London capital market. The maturity of these bonds is three years and four months. The bank noted that it recorded the largest subscription amount (6.3 times) and the highest number of investors (72 institutions) in the history of Korean pound-denominated bonds in a market characterized by investors' conservative tendencies.
A bank official said, “We succeeded in fundraising consecutively in London and Hong Kong markets within a week,” adding, “This served as an opportunity to once again prove the external creditworthiness of the Export-Import Bank and the new government of Korea.”