By Jennifer Chiou
New York, Aug. 6 - The Export-Import Bank of Korea priced a $100 million equivalent issue of Thai baht-denominated bonds with three-year and 10-year maturities.
The 3.5 billion baht-equivalent bonds were the first issued by a South Korean issuer to enter the Thai baht bond market.
After the baht-dollar currency swap, the interest rates were Libor plus 81 basis points for the three-year bonds and 120 bps for the 10-year bonds, which Kexim said are 70 bps to 100 bps lower than when directly issuing bonds in the U.S. dollar market.
The bank received approval from the Thailand government to issue the baht bond on July 1.
"The deal was possible thanks to the bank's effort to strategically mix the bonds' maturity and interest rate structure considering the preference of major investors including government pension funds, asset management companies and insurance companies," a Kexim official said in a news release.
"In addition, the bank's continuous monitoring over the baht-dollar currency swap market to catch the best time of issuance also contributed to the successful transaction."
Proceeds from the sale will be used to support Korean companies' participation in overseas projects, including natural resources development.
Kexim is a Seoul-based state-owned bank.
| Issuer: | Export-Import Bank of Korea
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| Issue: | Thai baht-denominated bonds
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| Total amount: | $100 million equivalent
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| Announcement date: | July 31
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| Three-year bonds
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| Maturity: | Three years
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| Coupon: | Libor plus 81 bps
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| 10-year bonds
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| Maturity: | 10 years
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| Coupon: | Libor plus 120 bps
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