The Export-Import Bank of Korea on Sept. 15 announced its issuance of foreign currency stabilization bonds worth USD 1.5 billion at record-low interest rates. (Yonhap News)

By Kim Young Deok and Lee Jihae

The Export-Import (Exim) Bank of Korea on Sept. 15 said it issued global (foreign currency) bonds worth USD 1.5 billion at record-low interest rates.

The bank issued USD 400 million bonds maturing in five years, USD 500 million bonds expiring in 10 years and EUR 500 million bonds maturing in three years.

The euro-denominated bonds have an interest rate of minus 0.118%, the lowest among Korean institutions. 

The five-year dollar bonds have an interest rate of 0.758% and the 10-year dollar bonds 1.316%, the latter figure being the lowest since the 2008 financial crisis.

The Ministry of Economy and Finance said foreign exchange bonds issued on Sept. 9 at record-low rates reduced the rates of the latest bonds.

With the successful issuance of the latest foreign exchange bonds, the ministry said it expects lower costs to supply foreign currency to domestic corporations and financial institutions.

The bank will use the funds from the bonds to boost aid to small and medium businesses hit hard by COVID-19 as well as help fund the Korean New Deal.

kyd1991@korea.kr