Korea Eximbank Issues $2B in Global Bonds, Sets Historic Spread Lows at 18bp and 26bp

According to investment banks, Korea Eximbank issued $2 billion in global bonds on July 24, setting historic lows for borrowing spreads. The issuance comprised two tranches of $1 billion each on 3-year and 5-year fixed-rate tenors, with spreads of 18 basis points and 26 basis points respectively—marking the first time a Korean issuer outside the government narrowed spreads to the 10bp range on 3-year bonds. Initial guidance was set at 44bp and 47bp, but strong demand of approximately $6.3 billion in the book-building phase allowed the bank to compress spreads significantly.

The issuance benefited from Eximbank's extensive global investor network spanning Asia, Europe, and Latin America, including a pre-launch Mandarin-language investor call to expand reach in Chinese markets. The strong reception occurred despite recent geopolitical tensions and moderating sentiment in broader credit markets, reflecting confidence in Korea's economic growth outlook and Eximbank's standing as a top-tier sovereign, supranational, and agency (SSA) issuer.