Unique Short Green FRN Attracts Investors to Korea’s Largest Senior Euro Transaction

On May 17th, the Export-Import Bank of Korea (KEXIM) priced a dual-tranche € 1.5 billion euro benchmark bond, comprising of €550 million 2-year green floating rate notes and €950 million 3.5-year fixed rate notes.

The transaction was the largest-ever senior unsecured public euro bond transaction out of Korea.  

The multi-tranche offering originally included a 7-year fixed rate tranche but the uniqueness of the shorter green floating rate notes piqued investor interest during the book-building process, reflective of the current rates environment.  While substantial demand was seen in the 7-year tranche, the issuer decided to drop the longer tranche to focus on providing liquidity for the shorter tenors.

Founded in 1976, The Export-Import Bank of Korea is Korea’s official export credit agency and is 100% owned by the Government.

Natixis Corporate & Investment Banking* was a joint bookrunner and lead manager for the transaction.

* In addition to Citi, Crédit Agricole CIB, HSBC, J.P. Morgan, KB Securities, Korea Investment & Securities