KDB issues Eurobonds worth $1bn

Korea Development Bank has raised $1 billion by issuing dollar-denominated Eurobonds to Asian and European investors.

The bonds are five-year fixed-rate bonds. The bank will extend the money raised through the bond issuance to Korean companies that have been suffering from the COVID-19 crisis.

The bond’s interest rate was set at 90bp over the five-year Treasury bills, which was lower than that of the three-year foreign currency bonds (LIBOR+145bp) issued in early April. The issuance rate was 35bp lower compared with that offered by the Initial Price Guidance (five-year U.S. government bonds + 125bp area).