One of Asia’s savviest issuers, Export-Import Bank of Korea (Kexim), set a new US dollar bond benchmark across three tenors as it once again became the first South Korean issuer to access the G3 bond market in 2024.

The Korean policy bank on January 4 priced a triple-tranche SEC-registered offering totalling US$2 billion that included a sustainability bond amounting to US$800 million for three years. The 4.625% notes were printed at a spread of 53bp over the US treasuries.

The second tranche was a conventional bond also amounting to US$800 million with a coupon of 4.50%, which was equivalent to a spread of 63bp over the US treasuries. The third tranche was likewise a conventional bond amounting to US$400 million for 10 years, which was priced with a coupon of 4.625%, representing a spread of 73bp over the US treasuries. All three tranches managed to tighten their final spread by 27bp each from their initial price guidance of 80bp area, 90bp area and 100bp area, respectively.

Kexim announced the deal in the morning of January 4 and the offering immediately gained traction among investors as the order book reached over US$2 billion by 12pm, Hong Kong time. The demand grew bigger as the European market opened to US$4 billion and Kexim revised the price guidance down in the US morning hours as the combined order book reached US$6.7 billion.

Kexim will use the proceeds of the sustainability bond to finance or refinance new and existing projects or assets related to renewable energy, energy efficiency, clean transportation, pollution prevention and control, sustainable marine transportation, and sustainable water and wastewater management. The proceeds of the five-year and 10-year conventional bonds are earmarked for general operations, including extending foreign currency loans and repayment of maturing debts and other obligations.

ANZ, BNP Paribas, HSBC, J.P. Morgan, MUFG and Standard Chartered are the joint bookrunners and lead managers for the transaction, while Korea Investment & Securities acted as a lead manager.