KB Kookmin Bank has issued €650 million in euro-denominated sustainable covered bonds, marking the largest issuance by a Korean bank to date. This move demonstrates the bank's competitive funding capabilities amid growing uncertainties in global interest rates and inflation.
The bank announced on September 15 that it completed the issuance of the four-year maturity sustainable covered bonds on September 14.
The issuance rate is set at 3.625%, which includes a 24 basis point (1 basis point = 0.01 percentage points) premium over the four-year euro mid-swap (EUR MS) rate. This premium is 12 basis points lower than the 36 basis points recorded during a similar issuance last year, representing the lowest premium for any euro covered bonds issued by KB Kookmin Bank to date.
To expand its European investor base, KB Kookmin Bank conducted a Non-Deal Roadshow (NDR) in early September, visiting Germany, Luxembourg, and Switzerland. During this trip, the bank met with over 12 major investment institutions, including central banks and international organizations, to broaden its investor outreach.
Since becoming the first Korean bank to issue covered bonds in July 2020, KB Kookmin Bank has consistently issued benchmark-level euro covered bonds each year. This has helped establish its reputation as a leading covered bond issuer not only in South Korea but also across Asia.
KB Kookmin Bank's covered bonds are backed by high-quality assets, such as residential mortgage loans, which have earned them top ratings (AAA) from international credit rating agencies Standard & Poor's (S&P) and Fitch.
A representative from KB Kookmin Bank stated, "We are committed to expanding our investor base in the European market and enhancing the status of Korean covered bonds, building on the track record we have established since 2020."
* This article has been translated by AI.
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